28th Mar 2014 08:55
LONDON (Alliance News) - UK defence company QinetiQ Group PLC Friday said it is still on track to deliver on its own expectations in the financial year that ends on Monday.
In a trading update, the company said its EMEA Services unit was continuing to perform well, buoyed by projects it is doing outside its traditional UK markets.
Its US Services unit is performing in line with expectations even though the US federal contracting environment remains uncertain, it said.
However, its Global Products unit is still being hit by the drawdown of US troops from Afghanistan, which is causing slippages in order flow and delivery schedules for conflict-related products.
All the major UK defence companies have been hit by the reduction of forces in recent conflict zones like Iraq and Afghanistan, as well as the uncertainties over government spending, particularly in the US.
In recent months, the company has maintained that its guidance for the year is wider than usual, particularly for its Global Products business. In February, it said it was confident that its main businesses and newer growth opportunities would drive an increase in sustainable earnings over the medium term.
QinetiQ said in will put out its results for the year to March 31 on May 22.
QinetiQ shares were up 0.1% at 223.8 pence early Friday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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