17th Apr 2023 08:45
(Alliance News) - Qinetiq Group PLC on Monday said it expects financial 2023 results to be ahead of its previous guidance and the upper range of market consensus expectations.
Qinetiq is a Hampshire, England-based science & engineering company operating primarily in the defence and security markets. Its shares were up 4.3% to 366.60 pence each in London on Monday morning.
The company said order intake was up 40% in the financial year that ended March 31. This amounts to more than GBP1.7 billion and is a "record-high" for Qinetiq.
The company expects to deliver high-teens percentage total revenue growth, with underlying operating profit of at least GBP175 million, including the benefit of the Avantus Federal LLC and Air Affairs Australia acquisitions. Qinetiq bought both Avantus and Air Affairs in November.
Air Affairs is an Australian defence services company that specialises in air threat representation, test & evaluation, unmanned targets, and mission rehearsal. Avantus Federal provides cyber, data analytics and software development solutions to the US Department of Defence, Intelligence Community, Department of Homeland Security and other federal civilian agencies.
Qinetiq noted that the performance of its Global Products sector has been "good". In particular, it said that its US business has "delivered well", with order intake of USD280 million and annual revenue growth of 25%.
It added that in EMEA Services, the company achieved "a number of strategic wins", with good continued growth in the UK and Australia.
"The integrations of Avantus and Air Affairs, two strategically significant acquisitions in the US and Australia, are progressing well and create a strong global platform. These achievements, coupled with effective use of our balance sheet, provide positive momentum for us to deliver sustainable performance in the years ahead and we remain on-track to reach our strategic growth ambition," said Chief Executive Officer Steve Wadey.
"Our distinctive offerings remain in high demand, demonstrating we are well placed to respond to our customers' long-term needs driven by world events and the importance of a technologically advanced defence industry to the national security interests of our 3 home countries."
Qinetiq plans to announce its annual results on May 25.
By Sophie Rose; Alliance News reporter
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