Qinetiq profits rise after largest annual order intake in a decade

Qinetiq reported a rise in full-year profit and revenue on Thursday as it recorded its largest annual order intake in a decade.

In the year to the end of March, underlying pre-tax profit rose 13% to £149.9m, while total pre-tax profit rose to £146.2m from £123.1m the year before. Revenue jumped 19% to £1.3bn and orders were up 18%, or 11% on an organic basis.

Qinetiq said strong organic growth was complemented by revenue and profit contribution from recently acquired businesses. This includes the advanced sensing solutions business formerly known as MTEQ, bought in December 2019, training specialist NSC, bought in February 2020, and Naimuri, a specialist in software development and data analytics, acquired in July 2020.

This contribution was partially offset by the disposals of Boldon James, Commerce Decisions and OptaSense in the year.

"We reported a strong performance in FY21, delivering growth across orders, revenue and profitability as we continue to successfully implement our strategy," the company said.

"Our rigorous focus on performance and ensuring we keep costs under control means we were successfully able to offset the impact from Covid-19. We enter FY22 in a strong position, with a large order backlog and a robust balance sheet. Strong cash generation from the company has continued in FY21 with 131% cash conversion, and a net cash position of £164.1m continues to provide support for investment opportunities."