Results Centre

QinetiQ, the defence, security and aerospace company, announces its interim results for the half year ended 30 September 2016 which saw:

Delivered solid operational performance in H1 FY17
Stable revenue and profit with continued high cash conversion
5% increase in interim dividend in line with commitment to a progressive dividend; £17m remaining of the share buyback programme
Focus on delivery of FY17
94% of FY17 revenue under contract, consistent with prior period (90%)
Maintaining expectations for Group performance in the current financial year
Progress implementing strategy
Orders increase due to £109m 11-year renewal for UK Naval Combat System Integration Support Services (NCSISS) and $28m US aircraft carrier orders
Transformation programme on track to improve customer focus and competitiveness
H1 2017 H1 2016
Business Performance
Orders £376.8m £228.4m
Revenue £361.8m £370.9m
Underlying operating profit* £51.9m £49.8m
Underlying operating margin* 14.3% 13.4%
Underlying profit after tax* £45.5m £43.2m
Underlying net cash flow from operations (post capex)* £50.9m £46.9m
Underlying cash conversion ratio* 98% 94%
Underlying earnings per share (eps)* 7.9p 7.3p
Net cash £271.2m £181.5m
Dividend per share 2.0p 1.9p
Statutory Reporting
Operating profit £51.7m £48.9m
Profit attributable to shareholders £49.5m £42.0m
Total earnings per share 8.6p 7.1p

Steve Wadey, Group Chief Executive Officer said:

“We have secured good order intake, delivered a solid operational performance and demonstrated encouraging progress in the implementation of our strategy to drive future growth. We are on track with transforming the company and have secured the renewal of NCSISS for 11 years creating a UK centre of excellence for maritime mission systems and taking a significant step forward in modernising vital test and evaluation services in the UK.”

The initial progress we have made, combined with our ongoing assessment of the market environment, and in particular feedback from customers reinforce that we have the right strategy in place to drive future growth.

The Group’s Global Products division has shorter order cycles than EMEA Services. At 30 September 2016, FY17 revenue under contract was above that of a year ago, but the performance of Global Products remains dependent on the timing of shipments of key orders.

Overall, the Board’s expectations for Group performance this financial year remain unchanged.

QinetiQ People Who Know How
Results Centre