14th Jul 2020 09:54
(Alliance News) - QinetiQ Group PLC on Tuesday said its order intake continued to be strong in the first quarter of its financial year despite Covid-19 disruptions, as cost cuts reduced the hit to revenue and profit from the virus pandemic.
The Hampshire, England-based security and defence contractor also announced the acquisition of UK software firm and new contract with the UK Ministry of Defence.
QinetiQ shares were up 2.2% at 305.40 pence each on Monday morning in London.
QinetiQ saw a limited impact from Covid-19 on EMEA Services in three months to June 30, it said, as the company has long-term contracts and provides what is considered essential work to its clients. Small impacts on customer trials and training activity were experienced which caused reduced flying hours in Germany, but most of this activity is now resuming.
The group saw a more significant disruption in Global Products causing delays to customer deliveries, but these are beginning to resume.
Top line growth continued, driven by the contribution of MTEQ in the US, the company said.
QinetiQ announced the acquisition of sensing solutions firm Manufacturing Techniques Inc - or MTEQ - for up to USD125 million in October last year, completing the purchase in December.
QinetiQ on Tuesday revealed a new acquisition, spending GBP25 million on Manchester-based Naimuri Ltd, a software development and data analytics company which provides cloud-based services and technology to UK intelligence and law enforcement.
Naimuri expects to deliver in excess of GBP9 million revenue and GBP2m EBITDA. It employs about 70 people.
"We will invest and build upon Naimuri's strong capabilities in data analytics, data intelligence and agile software development to meet customer needs and drive growth in both the security and defence sectors," the group said.
Back in June, QinetiQ had announced the sale of Boldon James Ltd to US-headquartered software company Help Systems International Ltd for GBP30 million. Boldon James provides data classification & secure email solutions, and in the year ended March 31 generated GBP9 million revenue.
"The disposal of Boldon James and acquisition of Naimuri have been strategy-led choices, generating capital from a non-core asset and reinvesting in a capability that is central to our vision-based strategy, to drive growth and shareholder value," QinetiQ explained Tuesday.
The company also said it has received a GBP30 million five-year contract with the UK MoD to provide mission data and technical services to the RAF Typhoon delivery team.
QinetiQ continued its role in the operation of ranges during the Covid-19 crisis which saw it take part in the first firing of the Martlet missile from a Wildcat helicopter at MOD Aberporth, a key milestone in demonstrating the ability to protect the UK's new aircraft carriers, the group said.
QinetiQ on Monday had announced the solidification of a proxy agreement with the US Defense Counter Intelligence & Security Agency to operate all US defence operations under a new special security agreement.
The new agreement replaces the prior proxy agreement for the QinetiQ North America business and also covers all operations undertaken through its recent MTEQ acquisition, which was completed in December.
QinetiQ also has secured a contract to design and construct an unmanned aerial systems flight test range in Australia.
QinetiQ added it will provide guidance on its financial performance as soon as possible after uncertainty over the Covid-19 crisis clears.
By Greg Roxburgh; [email protected]
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