Qinetiq trading in line as Target Systems acquisition is integrated
Qinetiq, the defence technology specialist, said underlying trading was as expected during the third quarter and that its aspirations for the full year to end-March were unchanged.
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The FTSE 250 group said revenue under contract at its smaller division, Global Products, was slightly ahead of this time last year thanks to a greater flow of orders at the North America business.
Though the division has shorter order cycles than the larger Europe, Middle East and Australasia arm, the company stressed that the division's performance remains dependent on the timing and shipment of key orders.
In EMEA Services revenue under contract was said to be similar to the same time last year with "resilient" margins, with the division's performance as a whole is expected to remain "steady" this year, as previously indicated.
Qinetiq's recent deal flow has been encouraging, with December seeing the award of a £1bn addition to its long-term partnering agreement (LTPA) with the UK Ministry of Defence, committing roughly half of the core LTPA revenues until 31 March 2028.
Meggitt Target Systems, which was acquired later that month, has been renamed QinetiQ Target Systems and, as it generates 90% of its revenue from outside the UK now forms part of the international business unit and will be reported in the Global Products division.