Qinetiq first-half profit up, maintains expectations for FY18

FTSE 250 defence technology group Qinetiq reported a rise in first-half profit and revenue on Thursday as it maintained its expectations for FY18.

In the six months to 30 September, pre-tax profit increased to £69.3m from £51.2m in the same period year ago, on revenue of £392.5m, up from £361.8m. The company said overall organic growth in revenue was principally due to growth of revenue in EMEA Services which was up 3% on an organic basis. Meanwhile, Global Products revenue was flat, after adjusting for foreign exchange and the QTS acquisition.

Orders in the first half came in at £276.3m, down from £376.8m in the same period a year ago, which included the £109m 11-year renewal from the UK Ministry of Defence of the Naval Combat System Integration Support Services contract.

Chief executive officer Steve Wadey said: "We have delivered a solid operational performance in the first half of the year despite challenging markets, achieving a 3% increase in organic revenue which builds on last year's growth.

"We are encouraged by the progress we have made to date. Over the medium term, investment in our strategy will enable us to help customers respond to their immediate security and economic challenges, win longer term programmes and contracts, as well as increase the group's share of revenue from international markets."

The group said it was maintaining its expectations for FY18.

At 1000 GMT, the shares were down 5.2% to 208.60p.