QinetiQ Group plc audited preliminary results for the year ended 31 March 2008

28 May 2008

Financial summary

 

2008 2007
Underlying profit before tax £109.0m £94.0m
Profit before tax £51.4m £89.3m
Underlying earnings per share 13.4p 11.3p
Basic earnings per share 7.2p 10.5p
Interest cover 9.2 times 11.7 times
Net debt £379.9m £300.8m
Cash flow from operations £102.3m £94.1m
Orders £1,277.1m £1,214.0m
Funded backlog (excluding LTPA) £947.7m £850.9m
Underlying effective tax rate 19.30% 21.20%
Full year dividend per ordinary share 4.25p 3.65p

Underlying financial measures are presented as the Board believes these provide a better representation of the Group’s long term performance trends. Definitions of underlying measures of performance can be found in the glossary on page 21. A reconciliation between basic and underlying earnings can be found in note 4 in the preliminary results announcement.

Financial Highlights

Revenue up 19% to £1,366m includes organic revenue growth of 8.6%
Underlying operating profit increased 20% to £127.0m
Underlying earnings per share growth of 19% to 13.4p (2007: 11.3p)
Full year dividend increased by 16% to 4.25 pence per share (2007: 3.65 pence per share)
Healthy book to bill ratio of 1.1:1
Total funded backlog of £5.7bn (including LTPA)

Operating Highlights

QNA

Organic revenue growth of 17.5%
$1 billion+ business consolidating market presence
Business integration delivering continued strong organic growth
Completed five acquisitions in key markets

EMEA

Organic revenue growth of 4.5%
Continued growth in revenue from MOD
Overseas expansion into Australia through investment of £13m in three acquisitions
Business reorganised to exploit future growth opportunities
Restructuring ahead of schedule and will deliver improved margins

Ventures

Continued investment in Ventures in year
Venture fund established with Coller Capital

Commenting on the results QinetiQ CEO Graham Love:

“QinetiQ has delivered another year of strong operating and financial performance with EPS growth of 19% reflecting the benefits of the highly differentiated business we have built in the UK and North America. Our North American performance continues to demonstrate the quality of the businesses we have acquired and their successful integration into a focussed $1bn plus turnover enterprise. It is also pleasing to see EMEA deliver organic revenue growth of 4.5% with more to come as our capability review and restructuring bear fruit.

Our business model and forward visibility to earnings are robust. Our ability to innovate and respond quickly to our customers’ needs with value for money solutions through the deep expertise of our people ensures that the Group is well positioned to benefit from the opportunities that exist in all of our key markets. We enter the new year with confidence and expect to continue making good progress towards our Group targets including our increased medium-term operating margin target of 11%.”

Downloadable copy of the extended preliminary results release [PDF]

QinetiQ People Who Know How
QinetiQ Group plc audited preliminary results for the year ended 31 March 2008