Investor Overview

QinetiQ is a leading science and engineering company operating primarily in the defence, security and critical infrastructure markets. We are an information, knowledge and technology based company with the breadth and depth of more than 6,000 people, including more than 3,000 scientists and engineers.

Unique capabilities critical to national sovereignty

  • Key partner to UK defence 
  • Leading expertise and facilities
  • At the centre of creating, testing and training defence capability

With

  • Over 3,000 engineers and scientists globally
  • 34 sites across the UK
  • 16 sites under the Long Term Partnering Agreement

Increasing exposure to attractive international markets 

  • Significant presence in high-growth home countries – the US and Australia, as well as the UK
  • Growing presence in the Middle East, Europe and Canada
  • Ambition to increase international revenue to 50% of Group
  • Addressable market of >£8bn

With

  • 30% international revenue (FY18: 27%)
  • 4 acquisitions since the launch of new strategy
  • 41% revenue increase for QinetiQ Target Systems in FY19

A clear growth strategy

  • Lead and modernise UK test and evaluation
  • Build an international company
  • Innovating for our customers’ advantage

With

  • £3.1bn Total order backlog (FY18: £2.0bn)

  • £370m investment into the Long Term Partnering Agreement

  • 3 years of revenue growth

Strong financial profile

  • Long-term contracts
  • Cash generative model Strong balance sheet
  • Ability to self-fund organic and inorganic investment
  • Clear capital allocation policy

With 

  • 74% revenue cover (FY18: 69%)
  • 102% cash conversion (FY18: 103%)
  • £188.5m of net cash (FY18: £266.8m)

Increasing returns to our shareholders

  • Three years of revenue growth following five years of decline

  • Sustainable increase in key financial metrics

  • Progressive dividend policy

With 

  • 9% revenue growth (FY18: 6%)
  • 2% underlying EPS growth (FY18: 7%)
  • 5% increase in full year dividend (FY18: 5%)

Download the Investment Case