27th Sep 2013 07:05
LONDON (Alliance News) - QinetiQ Group Plc. (QQ.L), a defence, security and aerospace company, reaffirmed its previous guidance for Group performance in the full year to 31 March 2014.
The company said that EMEA Services continues to perform well, delivering a steady performance with good order intake. The division was recently selected to provide data security services to the UK Government's smart meter programme under an 8 million pounds contract with CGI.
The performance of US Services remains in line with expectations. Market conditions remain challenging under a reduced US Government budget and a slower contracting environment with frequent protests of contract awards. The impact of sequestration on US Government budgets for the fiscal year beginning on 1 October 2013 remains unclear and management is controlling its cost base tightly to maintain competitive rates, the company said.
According to the company, the performance of Global Products, which has shorter order cycles and a more lumpy revenue profile than the services divisions, continues to be impacted by US budgetary pressures and the drawdown of overseas US military forces. Visibility of significant orders and their timing remains limited, with key programmes experiencing slippage in order placement, and the US Products business is holding back expenditure in all areas as a result. Talon orders worth $28 million from Iraq and Pakistan, originally expected earlier in the year, have now been received and will largely be delivered in the second half of the year.
The company noted that the outlook for the full year to 31 March 2014 is unchanged from that set out in the Interim Management Statement in July 2013.
Copyright RTT News/dpa-AFX
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