15th Oct 2024 09:03
(Alliance News) - Qinetiq Group PLC on Tuesday said it is on track to deliver full-year expectations in line with its prior guidance, following increased order intake momentum in its financial second quarter.
The Farnborough, Hampshire-based defence technology company said that "good operational performance" in its second quarter ended September 30 means it remains on track to deliver "high-single digit organic revenue growth" in its full-year results for 2025.
Revenue under contract for the full year is also in line with the second quarter of 2023, Qinetiq added. Orders secured during the quarter included a ten-year EUR284 million aerial training services contract with the German Armed Forces Procurement Office, an aerial target systems contract from the US Army for an unspecified amount, and a three-year contract worth up to GBP150 million to support the development of tactical military communications for the British Army and begin the DragonFire laser directed energy weapon minimum deployable capability programme for the UK Royal Navy.
Qinetiq also expects to see cash proceeds of GBP112 million in the second half of the year from the sale and leaseback of its Farnborough site to a fund managed by Tristan Capital Partners, announced in September.
Qinetiq didn't on Tuesday provide a profit forecast. However, Shore Capital forecasts Qinetiq will deliver full-year pretax profit of GBP243.5 million for 2025 on revenue of GBP2.04 billion, representing 33% growth in pretax profit from GBP182.7 million last year and a 6.8% rise in revenue from GBP1.91 billion.
Qinetiq will publish its interim results on November 14.
Chief Executive Officer Steve Wadey said: "We have delivered a good operational and financial performance in the quarter, and our services and products continue to be of high relevance and significant value to our customers in a heightened threat environment. Against a backdrop of political transition in our core markets, I am pleased that order intake momentum has been maintained, which underpins our long-term sustainable growth."
Shares in Qinetiq were down 0.4% at 453.09 pence each in London on Tuesday morning
By Emily Parsons, Alliance News reporter
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