Prior to entering its closed period, QinetiQ Group plc today reconfirms the guidance given in its Interim Management Statement (“IMS”) dated 2 February 2012.
QinetiQ remains on course to deliver on its expectations for the financial year ending 31 March 2012 with the benefits of its self-help programme coming through in the Group’s performance and improving underlying competitiveness. However, the market outlook beyond the current year is unchanged as forward visibility remains lower than normal at this time.
On 29 March 2012, QinetiQ and the UK Ministry of Defence (MOD) signed an agreement which discharges the MOD from its accumulated liabilities for rationalisation costs incurred in previous years, the net result of which is a one-off payment to QinetiQ of £65million which will be received after the year end. This settles liabilities which otherwise would be expected to be recovered through revenue rates over approximately ten years.
QinetiQ has also obtained MOD agreement to changes in its Special Shareholder rights which are subject to shareholder approval at the Group’s next AGM. These include removal of the MOD’s right to veto any transaction or activity and the introduction of a less onerous compliance system similar to those of QinetiQ’s peer companies. The material shareholder thresholds remain unchanged.
Commenting on the proposed changes to the Special Shareholder rights, Leo Quinn, Chief Executive Officer said: “This is a positive step in further modernising QinetiQ and was one of the key objectives of our 24-month self-help plan. As the Group continues to transform itself into a competitive commercial business we look forward to working alongside the MOD, our key UK customer, in the next phase of our development.”
QinetiQ’s preliminary results for the financial year dated 31 March 2012 will be announced on 24 May 2012. An analyst presentation is scheduled for 9am at the London Stock Exchange.
Notes for Editors:
- A Special Share (often referred to as a Golden Share) is a single share providing special rights to the Government. The terms of each Special Share are set out in QinetiQ’s publicly available Articles of Association. The rights attached to a Special Share cannot be varied without the Government's consent. Details on the Special Share can be found on page 92 of QinetiQ’s report and accounts 2011. http://www.qinetiq.com/investors/Documents/QinetiQ%20Annual%20Report%202011.pdf
- QinetiQ’s Special Share was put in place at privatisation – now 10 years ago - and has no economic or financial value.
- With regard to external shareholders, MOD retains its right to intervene at a 3% shareholding threshold on grounds of national security, and a 10% shareholding threshold on the grounds of conflict of interest.
- 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.
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