25th Oct 2023 10:33
(Alliance News) - Qinetiq Group PLC on Wednesday said it stands to benefit from rising defence budgets in its key markets, as it affirmed its aim of reaching the GBP3 billion revenue threshold in 2027.
The Farnborough, Hampshire-based defence technology company, ahead of an investor seminar on Wednesday, said the global "defence and security context" has reinforced the importance of its offering. It also highlighted its growth potential in its "more than GBP30 billion addressable market".
"We have delivered 9% organic revenue growth over the last four years, over twice the rate of growth in the defence budgets of our three home countries: the UK, US and Australia. Defence budgets are increasing around the world and we expect to continue delivering growth outpacing those budgets, driven by our structural alignment to high priority market segments that are increasing at faster rates," the company said.
It has a "robust plan" to achieve revenue growth to GBP2.4 billion organically alone in its 2027 financial year, and at "stable margins". Qinetiq's financial year runs until March. It added that "strategic acquisitions" can get the top line up to its GBP3 billion financial 2027 ambition.
Revenue in financial 2023 totalled GBP1.58 billion.
"We have a clear and robust capital allocation policy and are targeting to maintain a prudent balance sheet," Qinetiq added.
The investor event will be held in New York.
Shares in the company were 0.4% lower at 329.60 pence each in London on Wednesday morning.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Qinetiq