30th Sep 2014 08:02
LONDON (Alliance News) - Defence, security and aerospace firm QinetiQ Group PLC Tuesday reaffirmed its guidance for the full year to end-March 2015, continuing to expect short-term uncertainty in the UK defence market.
The company said that, notwithstanding the strong performance in its Europe, Middle East and Asia Services business, the UK Ministry of Defence transformation programme is likely to create short-term uncertainty in the UK defence market, and the division's performance as a whole is expected to remain steady this year.
Its outlook for Global Products is less clear, as the division has a "lumpy revenue profile" which means there is "a wide range of possible outcomes" for its performance. Although newer products are producing milestones, the draw-down of American overseas military forces is expected to continue damping demand for "conflict-related products".
This military draw-down has led to slower bookings in the Global Products division than in the previous year. QinetiQ said it expects Global Services to incur USD5 million in costs during the first half due to separating from its US Services infrastructure business. It is continuing to diversify the divisions portfolio. However, QinetiQ warned the division is not likely to benefit significantly from its repositioning until later in the year.
In its EMEA Services division, utilisation levels and order intake have been ahead of the previous year. The completion of a final milestone on an international project has also helped boost profitability, it said.
QinetiQ will announce its half-year results November 20.
Shares in QinetiQ were trading up 0.7% at 225.80 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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