QinetiQ shares tumble more than nine per cent as order slowdown spooks investors

 
Rebecca Smith
QinetiQ's shares plunged nine per cent
QinetiQ's shares plunged nine per cent (Source: Getty)

Shares in defence technology firm QinetiQ tumbled more than nine per cent today as it warned of an order slowdown in its latest trading update.

In the update covering the period from 31 March to date, the firm noted there was some "near-term unpredictability of order intake".

Read more: QinetiQ's share price soars after poaching Meggitt's target systems arm

The FTSE 250 company tried to strike an upbeat tone, acknowledging that the trading environment "remains dynamic" particularly in the UK after the June General Election, and that it had the capabilities "to thrive in this environment despite some near-term unpredictability of order intake".

For its EMEA services division, it said orders had been slower than expected with some customer contract award decisions deferred or delayed.

Despite the news, it reconfirmed its outlook for next year's full-year results from its preliminary results.

But investors weren't happy at the slowdown in new contracts, sending shares spiralling nine per cent.

The defence firm's shares have been on a rollercoaster ride over the past few months. While they hit an all-time high off the back of the company's full-year results in May, they have since dropped back.

Read more: QinetiQ on track to make £106m profit target

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