Interim Results for the half year ended 30 September 2013

21 Nov 2013

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

Encouraging increase in order intake in EMEA Services with growing international customer base
US Services stabilising post restructuring but visibility remains limited
Decrease in US conflict-related product sales and profits against record first half of last year
Balance sheet strength achieved by on-going high cash conversion
Increase in interim dividend reflecting re-basing of last year’s final dividend and confidence in strategy
Maintaining guidance for full year despite challenging markets
  H1 FY2014 H1 2013
Business Performance
Revenue £599.6m £685.5m
Organic change at constant currency (13)% (8)%
Underlying operating profit* £59.2m £95.3m
Underlying operating margin* 9.9% 13.9%
Underlying profit before tax* £52.3m £85.8m
Underlying net cash from operations (post capex)* £69.6m £95.7m
Underlying cash conversion ratio* 118% 101%
Net cash £120.5m £21.5m
Underlying earnings per share* 7.0p 10.5p
Dividend per share 1.4p 1.1p
Statutory Reporting
Operating profit £80.7m £87.8m
Profit before tax £72.6m £80.0m
Earnings per share 9.5p 9.9p

Commenting on the results, Leo Quinn, QinetiQ Chief Executive Officer said:

“We continue to reshape the Group through our Organic-Plus strategy. Of the ‘Core’ businesses, EMEA Services has generated a robust performance with encouraging order intake and is expected to remain steady this year. Despite heightened market uncertainty, US Services is stabilising and the strategic review of this division will determine the path to maximum value. As expected, Global Products has seen a decrease in conflict-related sales and continues to work on broadening its portfolio especially beyond defence.

“Our newer ‘Explore’ businesses are making good progress with several strategic wins building a foundation for future growth.

“Although the short-term range of possible outcomes remains wider than usual, particularly in Global Products, the Board is maintaining its expectations for overall Group performance in the current year absent any material changes in customer requirements. Over the medium term, our confidence that our ‘Core’ businesses and newer growth opportunities will drive an increase in sustainable earnings is reflected in the increased interim dividend.”

 

Other information

There will be a presentation of the interim results to analysts at 0900 hours UK time on 21 November 2013 at the London Stock Exchange, 10 Paternoster Square, EC4M 7LS. Registration for the webcast is available at: www.QinetiQ.com/investors where the presentation will also be available. An audiocast of the event will be available on the following numbers (confirmation: QinetiQ):

UK Freephone: 0800 368 0649
International / London local: +44 (0)203 059 8125

For further information please contact:

Media relations: QinetiQ press office +44 (0) 1252 393500
  Liz Morley, Maitland +44 (0) 7798 683108
 
Investor relations: David Bishop, QinetiQ +44 (0) 7920 108675
QinetiQ People Who Know How
Interim Results for the half year ended 30 September 2013