QinetiQ Group plc Second Quarter Trading Update (5564C)
October 12 2022 - 2:00AM
UK Regulatory
TIDMQQ.
RNS Number : 5564C
QinetiQ Group plc
12 October 2022
News release
QinetiQ Group plc
Second Quarter Trading Update
12 October 2022 - QinetiQ Group plc ("QinetiQ" or "the Group")
today issues a trading update covering its second quarter to 30
September 2022.
Maintaining full year guidance - continuing to deliver for our
customers
We have delivered strong and consistent operational performance
in the second quarter. Order intake continues to remain excellent
with first half orders at c. GBP800m, 18% higher than the first
half of FY22, good organic revenue growth, profit in-line with our
expectations and strong cash conversion. With more than 90% of our
FY23 revenue under contract we remain confident to deliver in-line
with our expectations for the full year, despite the challenging
macro-economic environment.
EMEA Services
In the second quarter EMEA Services has continued to win
significant new orders and deliver strong organic revenue growth.
We have won a number of important new long-term contracts,
including a GBP32m 3-year contract with UK MOD for the Future
Combat Air System (FCAS) programme through the Engineering Delivery
Partner framework, a GBP26m uplift to the LTPA contract to reflect
inflationary effects in the UK, a 5-year contract extension with
Boeing for our 5 metre wind tunnel services and contracts totalling
A$77m in Australia through growth of the Managed Services Provider
(MSP) programme.
Global Products
In the second quarter we have delivered good performance across
Global Products. Specifically, US performance has been strong with
orders, revenue and profit in the first half of FY23 above the
second half of FY22. We have continued to win and deliver for our
customers, including winning a 5-year contract worth up to $45m to
provide services for the Development Command C4ISR([1]) at the Fort
Belvoir Prototyping Integration Facility and a multi-year research,
development and technology integration contract, worth up to $49m,
with the US Army for imaging services. QinetiQ Target Systems has
also continued to deliver well, including a number of notable wins
and deliveries for customer training exercises in Europe.
Strategic progress
We have delivered a number of strategic milestones in the second
quarter of FY23, most significantly our announcement in August to
acquire Avantus Federal in the US for $590m - regulatory approvals
are underway and we remain on-track to complete the acquisition by
the end of calendar year 2022. We have also recently announced the
agreement to acquire Air Affairs (Australia) Pty Ltd in Australia
for A$53m and the agreement to sell QinetiQ Space NV in Belgium to
Redwire Space Europe for EUR32m. All three transactions demonstrate
disciplined execution of our strategy and capital allocation policy
- focusing our capital deployment into strategically-aligned
businesses to support and drive our long-term growth in our six
distinctive offerings in our three home countries, the UK, US and
Australia, as we continue to build an integrated global defence and
security company, delivering good shareholder returns.
Steve Wadey, Group Chief Executive Officer said:
"Against an uncertain and evolving economic backdrop, I am
delighted that we have delivered strong and consistent operational
performance in the first half of the year. We remain focused on
disciplined execution of our strategy to build an integrated global
defence and security company, delivering high-value solutions for
our customers. Our strategy to perform and grow continues to build
momentum across the Group, demonstrated by excellent order intake,
good organic revenue growth, profit in-line with our expectations
and three strategic transactions in the first half of the
year."
FY23 Interim Results
QinetiQ will publish its full Interim Results on Thursday 10(th)
November 2022. We will be hosting an in-person results presentation
at 09:30 BST at the London Stock Exchange, 10 Paternoster Square,
London, EC4M 7LS. Registration to join in-person or via the live
webcast is available here: https://www.qinetiq.com/en/investors
About QinetiQ
QinetiQ (QQ.L) is a leading science and engineering company
operating primarily in the defence and security markets. We work in
partnership with our customers to solve real world problems through
innovative solutions delivering operational and competitive
advantage. Visit our website www.QinetiQ.com . Follow us on
LinkedIn and Twitter @QinetiQ. Visit our blog www.QinetiQ-blogs.com
.
For further information please contact :
John Haworth, Group Head of Investor Relations: +44 (0) 7920 545841
Lorna Cobbett , Citigate Dewe Rogerson
(Media enquiries): +44 (0) 7771 344781
[1] C4ISR: Command, Control, Computers, Communications, Cyber,
Intelligence, Surveillance and Reconnaissance
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