Full year results for the year ended 31 March 2016

2016 2015
Business Performance – continuing operations+
Orders £659.8m £613.6m
Revenue £755.7m £763.8m
Underlying operating profit £108.9m £111.3m
Underlying operating margin 14.4% 14.6%
Underlying profit before tax £108.7m £107.8m
Underlying earnings per share 16.3p 15.2p
Underlying net cash from operations (post capex) £103.6m £114.9m
Underlying cash conversion ratio 96% 103%
Net cash £274.5m £195.5m
Full year dividend per share 5.7p 5.4p
Statutory Reporting
Operating profit from continuing operations £75.3m £109.5m
Profit attributable to shareholders £106.1m £104.7m
Total earnings per share 18.1p 16.6p

+The Group completed the sale of US Services on 23 May 2014. Total Group performance in 2015 included approximately two months contribution from US Services. 2015 continuing operations (above) comprise EMEA Services and Global Products but exclude US Services. The statutory reporting summary above includes the effect of specific adjusting items and discontinued operations.

Headlines

Solid operating performance in FY16
8% increase in orders due to a multi-year contract renewal
Stable revenue and profitability with continued high cash conversion
Disposal of non-core Cyveillance business for net disposal proceeds of £22m
6% increase in the full year dividend; £47m remaining of share buyback programme
Focus on delivery of FY17
Markets continue to be challenging with some de-scoping and delay to orders
74% of FY17 revenue under contract, broadly consistent with previous year (77%)
Board expectations for Group performance in FY17 remain unchanged
Creating the conditions for growth
Set out vision and strategy
Reorganised the company
Launched a transformation programme to improve customer focus and competitiveness

Steve Wadey, Chief Executive Officer said:

“Last year we delivered a solid operating performance in challenging markets. The expertise of our scientists and engineers is well matched to emerging themes in global markets. We are capable of more. I have set out our vision and strategy, reorganised the company and launched a transformation programme. These changes are creating the conditions for growth.”

Results Centre

Other information

There will be a presentation of the preliminary annual results to analysts at 0900 hours UK time on 26 May 2016 in the Milton Suite, The Grange Hotel – St Pauls, 10 Godliman Street, London EC4V 5AJ. 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 +44 (0)20 3059 8125 (confirmation: QinetiQ).

For further information please contact:

Investor relations: David Bishop, QinetiQ +44 (0) 7920 108675
 
Media relations: QinetiQ press office +44 (0) 1252 393500
  Chris Barrie, Citigate Dewe Rogerson +44 (0) 7968 727289