Thursday 12 November 2020 10:52 am

Defence firm Qinetiq lifts guidance as order book grows

Defence and security firm Qinetiq has raised its guidance for the full year after it reported a strong increase in orders against the backdrop of the Covid-19 crisis.

Read more: Qinetiq maintains full year outlook as it increases US presence

The figures

Qinetiq posted revenue of £603.2m in the six months to the end of September, up 24 per cent on last year.

Statutory operating profit fell 10 per cent from £68.5m to £61.6m.

Earnings per share increased from 11p to 13p.

Qinetiq said it will hold its dividend at 2.2p.

Why it’s interesting

Qinetiq has posted a robust set of half-year results as it shrugged off the impact of coronavirus to beef up its order book.

The Farnborough-based company said orders had increased 37 per cent, driven by strong demand from the Ministry of Defence and positive trading by Mteq, the US firm it acquired in a $105m deal last year.

As a result, Qinetiq said it was increasing its guidance for the full year, forecasting low double-digit revenue growth.

The firm said it had roughly £575m of revenue under contract for the second half of the year, compared to roughly £450 last year.

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What Qinetiq said

“We have delivered an excellent first half performance despite a challenging environment,” said chief executive Steve Wadey.

“We are entering the second half with confidence, with a significant order backlog, strong customer focus and an evolved strategy reflecting the increasing ambition of the group and changing customer needs. We are increasing our full year guidance whilst proactively managing the potential risks from further Covid-19 disruption.”