Qinetiq in line as US defence market remains uncertain

TRADING in the third quarter continued to tick along in line with expectations for defence technology group Qinetiq, it said in a trading update yesterday.

In November, Qinetiq said its first half performance had been strong, despite cuts to government spending in the UK and the US.

This uncertainty in the US market had lingered this year, the company said yesterday, as delays to award contracts continued to weigh on performance as a “significant number” of bids remain outstanding.

The performance of its UK services division continued to benefit from a more competitive cost base and better project execution.

As previously guided, Qinetiq said that the performance of its global products division will be weighted towards the first half due to the delivery of two key orders for its vehicle survivability product, Q-Net.

The FTSE 250 firm confirmed that its full-year outlook remains unchanged, despite visibility remaining much lower, particularly in the US.