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

QinetiqAnnouncement

15/10/2024 07:00

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RNS Number : 1461I  QinetiQ Group plc  15 October 2024

News release

QinetiQ Group plc

Second Quarter Trading Update

15 October 2024 - QinetiQ Group plc ("QinetiQ" or the "Group") today issues a
trading update covering the second quarter.

On-track to deliver full year expectations

The Group has delivered good operational performance in the second quarter and
for the full year we remain on-track to deliver high single digit organic
revenue growth at stable margin with high cash conversion, in line with our
guidance. Order intake momentum in the quarter has continued with revenue
under contract for the full year in line with this time last year. Cash
conversion at the half is consistent with historical levels at c.80% and
underpins our expectations for the full year. Our £100m share buyback
programme is on track to be completed in the financial year with £62m shares
purchased by the end of the second quarter.

Steve Wadey, Group Chief Executive Officer said:

"We have delivered a good operational and financial performance in the
quarter, and our services and products continue to be of high relevance and
significant value to our customers in a heightened threat environment. Against
a backdrop of political transition in our core markets, I am pleased that
order intake momentum has been maintained, which underpins our long-term
sustainable growth."

Operational performance update

EMEA Services has maintained a high performance level throughout the quarter
characterised by strong programme execution on our long-term contracts in the
UK and Australia.

Global Solutions traded in line with our expectations including the legacy
Avantus business, with strong delivery across our major contracts with the
Space Development Agency and the Office of the Secretary of Defense Strategic
Capabilities Office in the US.

As announced on 30th September, we have signed an agreement for the sale and
leaseback of our Farnborough site with the cash proceeds of £112m expected in
the second half.

Momentum of order intake underpins our medium and long-term outlook

Reflecting the global threat environment and increasing spending over the
long-term by our customers in our core markets we secured a number of highly
strategic orders in the quarter: These included:

 •    A ten-year €284m Aerial Training Services contract with the German Armed
      Forces Procurement Office, the largest and longest contract yet awarded to our
      Global Threat Representation business.
 •    An Aerial Target Systems (ATS-3) contract from the U.S. Army, for the first
      time entering the US market as prime contractor to provide a comprehensive
      range of highly sophisticated aerial target systems;
 •    A contract to deliver critical technology for the Electromagnetic Aircraft
      Launch System and the Advanced Arresting Gear to be installed on the U.S.
      Navy's next Ford-class aircraft carrier; and
 •    A three-year contract, worth up to £150m, to help deliver the next generation
      of tactical military communications for the British Army, as well as
      commencing the initial phase of the DragonFire laser directed energy weapon
      (LDEW) Minimum Deployable Capability programme for the Royal Navy.

FY25 Interim Results

QinetiQ will publish its full Interim Results on Thursday 14 November 2024. We
will be hosting an in-person results presentation at 09:30 GMT at the London
Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. Registration to join
in-person or via the live webcast will be available via our website at
https://www.qinetiq.com/en/ (https://www.qinetiq.com/en/) or at
https://brrmedia.news/QQ_Q2_24 (https://brrmedia.news/QQ_Q2_24)

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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