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

QinetiqAnnouncement

18/07/2024 07:00

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RNS Number : 8293W  QinetiQ Group plc  18 July 2024

News release

QinetiQ Group plc

First Quarter Trading Update

18 July 2024 - QinetiQ Group plc ("QinetiQ" or the "Group") today issues a
trading update covering its first quarter to 30 June 2024.

On-track to deliver FY25 expectations - good first quarter performance

Operational performance in the first quarter has been good and we remain
on-track to deliver high single digit organic revenue growth at stable margin
with good cash conversion, in line with our FY25 guidance. Order intake
performance was good with revenue under contract for the full year increasing
to 73%, up from 64% at April 2024.

As part of our continued focus on disciplined capital allocation, our £100m
share buyback programme is on-track to be completed in the financial year with
£32m shares purchased by the end of the first quarter.

Steve Wadey, Group Chief Executive Officer said:

"I am pleased that we have delivered a good start to the year, with
performance for the first quarter in line with our expectations and attractive
shareholder returns. The relevance and demand for our services and products
remains high in the elevated threat environment, as we continue to focus on
consistent operational delivery for our customers and disciplined capital
allocation. These three factors underpin our confidence in delivering our FY27
target of c.£2.4bn of organic revenue at c.12% margin and compelling value
for our shareholders."

Good operational performance in EMEA Services

EMEA Services continues to deliver good operational performance with revenue
growth in line with our expectations. Our long-term contracts, such as
Engineering Delivery Partner in the UK and Major Service Provider in
Australia, continue to perform well for our customers. We have also won a new
framework contract for NATO customers to utilise our Test & Evaluation
services in the UK provided under the Long Term Partnering Agreement.

Strong order intake in Global Solutions

Global Solutions delivered strong order intake with revenue performance in
line with our expectations. In the US, we have won a contract to be the sole
source provider of the survivability solution for the long-term Future Long
Range Assault Aircraft (FLRAA) programme, with our Light-appliqué Armour
Systems Technology. Through good delivery performance on our Tethered Aerostat
Radar System contract we have also won an initial 10% growth in contract
value, and we are continuing to realise the benefits of our integrated US
platform by winning framework contracts with two new National Security
customers.

Board Changes and AGM

As announced on 16th April 2024, Martin Cooper has been appointed as Group
CFO. We are pleased to confirm that Martin will join QinetiQ at the start of
September, sooner than originally anticipated.

QinetiQ's 2024 Annual General Meeting (AGM) will be held at 11am on Thursday
18(th) July at Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square,
London E1 6PW.

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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