05 February 2013 - Overall, the Group’s performance during the third quarter was as expected and the outlook for the year is unchanged from that set out in the half-year results announced in November 2012.
The performance of UK Services continues to benefit from a more competitive cost base and better project execution. As announced last week, the five-yearly periodic review of the Long Term Partnering Agreement (LTPA) has been successfully completed and terms agreed with the MOD for the provision of test, evaluation and training support services through to March 2018. The division continues to explore the medium-term opportunities presented by QinetiQ’s ability to support the MOD in its defence transformation programme.
In the US, the high level of uncertainty in the federal services market has been maintained by the extension of the sequestration deadline to 1 March 2013. Delays to contract awards continue to impact the performance of US Services and a significant number of bids remain outstanding. The division is continuing to plan and implement cost reductions to retain competitive rates in challenging market conditions.
As previously indicated, the performance of Global Products for the year will be first half weighted following the delivery of two key orders for the Q-Net™ vehicle survivability product, plus additional spares orders, during the first six months of the year.
Following the achievement of a net cash position at the half year, the Group’s balance sheet and cash generation remain strong.
The outlook for the year is unchanged from that set out in the half-year results on 21 November 2012. As previously indicated, visibility remains much lower than usual, particularly in the US. Despite this uncertainty, with the benefit of the strong first half performance the Board believes the Group as a whole will perform in line with its expectations for the year, absent any material change in customer requirements.
Notes to Editors:
A FTSE250 company, QinetiQ uses its domain knowledge to provide technical support and know-how to customers in the global aerospace, defence and security markets. QinetiQ's unique position enables it to be a trusted partner to government organisations, predominantly in the UK and the US, including defence departments, intelligence services and security agencies.
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