Interim Results
16/11/2023
Results for six months to 30 September 2023 (‘H1 FY24’)
| Statutory results | Underlying* results | |||
|---|---|---|---|---|
| H1 FY24 | H1 FY23 | H1 FY24 | H1 FY23 | |
| Revenue | £883.1m | £673.4m | £883.1m | £673.4m |
| Operating profit2 | £91.3m | £127.2m1 | £100.1m | £74.1m |
| Profit after tax | £63.7m | £110.2m1 | £77.3m | £65.4m |
| Earnings per share | 11.0p | 19.2p1 | 13.4p | 11.4p |
| Interim dividend per share | 2.6p | 2.4p | 2.6p | 2.4p |
| Orders | £952.7m | £798.8m | ||
| Order backlog | £3,132.0m | £2,968.6m | ||
| Net cash flow from operations | £62.2m | £99.5m1 | £71.7m | £106.8m1 |
| Net (debt)/cash | £(273.8)m | £264.0m | ||
Strong and consistent operational performance globally
- Orders up 19% at a record-high of £953m, up 2% organically, with a book-to-bill of 1.3x
- Revenue is up 31%, 19% on an organic basis
- Underlying operating profit is up 35%, 25% on an organic basis, with improved margin at 11.3%
- Cash conversion at 50% due to short-term timing and on-track to deliver FY guidance
- Statutory operating profit of £91m, H1 FY23 higher due to temporary FX related to Avantus
A differentiated company responding to national and global security needs
- A unique value proposition, highly relevant to an evolving and increasing threat
- Structurally aligned to high-priority and high-growth segments
- Delivering organic revenue at double growth rate of national defence budgets
- Avantus won $657m3 contract awards, driving future revenue growth
Full year performance in-line with market expectations, longer-term guidance unchanged
- FY24 performance will deliver high single digit organic revenue growth and high teens total revenue growth at a stable operating profit margin
- On-track for high single digit organic revenue growth to c.£2.4bn at c.12% margin by FY27
- Disciplined capital allocation and bolt-on acquisition optionality to c.£3bn revenue by FY27
- Focused on our AUKUS customers’ mission and increasing shareholder returns
Steve Wadey, Group Chief Executive Officer of QinetiQ said:
“I’m delighted with our strong first half results that have been achieved as a result of consistent operational performance from across the Group and the continued dedication of our people to deliver high value services and products critical to national defence and security. We have delivered excellent organic growth and improved our margin performance. We have also won significant new business and major contract renewals, with a major highlight being the outstanding orders performance of Avantus with $657m of contract awards since the start of the financial year.
We enter the second half of the year with confidence and positive momentum. Our relevance in the market is evidenced by the increasing demand for our distinctive offerings and growing order pipeline. We remain focused on supporting our customers’ mission and increasing returns for shareholders.”
- * Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary
- 1 Prior period comparatives have been restated due to a change in accounting policy in respect of Research and Development Expenditure Credits. See note 18 to the interim financial statements.
- 2 Underlying operating profit refers to operating profit from segments. See note 2 to the interim financial statements.
- 3 Total contract awards since the start of the financial year, $195m orders recognised in H1 FY24
You can download the full statement from our Results, Reports & Presentations page.
Interim results presentation:
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 is available here: https://www.qinetiq.com/en/investors/results-reports-and-presentations/fy24-interim-results.
For further information please contact:
John Haworth, Group Director Investor Relations: +44 (0) 7920 545841
Lindsay Walls, Group Director Communications (Media enquiries): +44 (0) 7793 427582