17th Nov 2016 07:47
LONDON (Alliance News) - Defence technology company QinetiQ Group PLC on Thursday reported a decline in revenue but growth in pretax profit in the first half of its financial year, driven by improved margins.
The mid-cap outsourcer, which supplies cyber security, robotics and defence training services, said it made a pretax profit of GBP51.2 million in the six months to the end of September, compared to a GBP48.3 million profit a year prior.
Revenue fell to GBP361.8 million from GBP370.9 million the year before, but the group's underlying operating margin improved to 14.3% from 13.4% to benefit the bottom line, driven by cost-cutting actions in the business.
QinetiQ said it remains on track for the full-year, with 94% of its full-year revenue expectations under contract. Orders in the first half rose to GBP376.8 million from GBP228.4 million a year prior, driven by the group's 11-year renewal on the UK Naval Combat System Integration Support Services contract and USD28.0 million in US aircraft carrier orders.
QineitQ declared an interim dividend of 2.00 pence per share, up from 1.90p a year prior.
"We have secured good order intake, delivered a solid operational performance and demonstrated encouraging progress in the implementation of our strategy to drive future growth," said Steve Wadey, QinetiQ's chief executive.
"We are on track with transforming the company and have secured the renewal of NCSISS for 11 years creating a UK centre of excellence for maritime mission systems and taking a significant step forward in modernising vital test and evaluation services in the UK," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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