REG - QinetiQ Group plc - QinetiQ Group plc Third Quarter Trading Update

QinetiqAnnouncement

21/01/2025 07:00

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RNS Number : 0194U  QinetiQ Group plc  21 January 2025

News release

QinetiQ Group plc

Third Quarter Trading Update

21 January 2025 - QinetiQ Group plc ("QinetiQ" or the "Group") today issues a
trading update covering the third quarter.

Full year and mid-term expectations unchanged

In line with our guidance, for the full year we continue to expect to deliver
high single digit organic revenue growth at stable underlying margin with high
cash conversion and in the mid-term £2.4bn of organic revenue at c.12% margin
by 2027. Our £100m share buyback programme is on-track to complete in early
February and on completion we will commence the additional £50m share buyback
programme announced at our Interim Results.

Trading environment

We have continued to deliver revenue growth in EMEA Services, where good
visibility in the medium term has not changed and the opportunity set of major
programmes is strong as outlined at the Interim Results presentation.
Short-term order intake in the UK has been slower than expected due to the
fiscal environment and we have taken proactive action to resize some of our
capabilities in our UK Intelligence business. Our UK Defence business which
has greater exposure to longer duration contracts has remained strong.

Order intake remains robust with stable revenue in Global Solutions, despite
headwinds in the contracting environment in the US. We are pleased to announce
that Tom Vecchiolla has taken over the leadership of our US business,
succeeding Shawn Purvis who helped build the business and brand in the US. Tom
is a highly experienced and seasoned leader having been President of Raytheon
International Inc. and most recently CEO of ST Engineering North America.

With increasing spending over the long-term in our core markets and our
capabilities aligned to the evolving threat environment, we continue to secure
a number of highly relevant and strategic programmes. Order intake is in line
with last year at £1.3bn and notable achievements in the quarter include
opening a new forward operating base in Huntsville, Alabama to support our new
US Army Aerial Target Systems 3 (ATS-3) contract, supporting the rapid entry
into service of the new Archer self-propelled 155 mm howitzer for the British
Army through our high value Test and Evaluation services and securing a
strategic partner contract in Australia for Engineering Services worth more
than $50m over 5 years.

Steve Wadey, Group Chief Executive Officer said:

"Our expectations for the full year remain unchanged, thanks to the hard work
of our talented people who have continued to focus on consistent operational
delivery across the Group.

"I am confident that QinetiQ remains well positioned to deliver long-term
growth and value creation for shareholders, with highly relevant and
differentiated capabilities, an established presence across key growth markets
and an orders pipeline worth over £11bn giving us significant long-term
visibility."

About QinetiQ

QinetiQ is an integrated global defence and security company focused on
mission-led innovation. QinetiQ employs circa 8,500 highly-skilled people,
committed to creating new ways of protecting what matters most; testing
technologies, systems, and processes to make sure they meet operational needs;
and enabling customers to deploy new and enhanced capabilities with the
assurance they will deliver the performance required.

For further information please contact:

Stephen Lamacraft, Group Interim Director Investor Relations:
                                +44 (0) 7471
885817

Lindsay Walls, Group Director Communications (Media
enquiries)                            +44 (0) 7793
427582

 

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