31st Mar 2006 07:10
QinetiQ Group plc31 March 2006 QinetiQ Group plc - Pre-Close Trading Update 31 March 2006 QinetiQ Group plc, the international defence and security technology company,today issues the following trading statement covering the period from its IPO on10 February to 31 March 2006. The company's full year results will be announced7 June 2006. The Board is pleased to confirm that the Group continues to trade in line withexpectations at the time of the IPO. The Defence & Technology Sector (D&T) has finished the year well with its usualstrong fourth quarter. In March the MOD announced that QinetiQ had been selectedas the preferred bidder for the 20 year CATS (Combined Aerial Target System)managed services contract, enhancing the service currently provided under theLTPA contract. Positive progress also continues to be made on the DefenceTraining Rationalisation (DTR) opportunity where QinetiQ's consortium has beendown-selected on both 25 year packages. The preferred bidder decision on DTR iscurrently expected in the autumn of 2006. The Security & Dual Use Sector (S&DU) has performed strongly in the period, witha positive contribution from Verhaert since its acquisition in September 2005.The portfolio of new commercialisation opportunities continues to be developed.The latest example is a 19.9% interest in Stingray Geophysical Limited, aseismic oil field monitoring company, into which QinetiQ provides IP and ongoingtechnology services and into which our venture capital partners will inject upto £6.6 million of cash funding. QinetiQ's North America Sector (QNA) continues to bed down successfully withinthe Group. During the last quarter, Talon shipments from Foster Miller havecontinued as expected while, as trailed in the IPO Prospectus, Westar hascompleted the acquisition of SimAuthor, a small flight simulation company.Apogen continues to make progress in managing ongoing delays in obtainingsecurity clearances for new recruits to staff recently won contracts with theDepartment of Homeland Security. QinetiQ's operating cash conversion remains strong and has been further enhancedby the £24.7 million sale of surplus buildings on the perimeter of theFarnborough site earlier this week, generating an immediate cash inflow of over£18 million. Following receipt of the £45 million indemnity from MOD, a total of£95 million in additional contributions has been made in the second half of theyear to reduce the Group's pension fund deficit. The Board is looking forward to QinetiQ's first full year as a public companywith confidence. For further information please contact:Nicky Louth-DaviesHead of Media and Corporate AffairsQinetiQT: +44 (0)1252 392809www.qinetiq.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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