Preliminary Financial Results for year ending 31 March 2018

Our strategy is delivering – second year of growth

Results for the year ended 31 March 2018 

  Statutory results Underlying* results
  2018 2017 2018 2017
Revenue £833.0m £783.1m £833.0m £783.1m
Operating profit £141.0m £132.7m £122.5m £116.3m
Profit after tax £138.1m £123.3m £109.0m £103.8m
Earnings per share 24.4p 21.5p 19.3p 18.1p
Full year dividend per share 6.3p 6.0p 6.3p 6.0p
 
Total funded order backlog £2,005.4m £2.178.7m
Total orders £687.4m1,2 £1,676.7m
Orders excluding LTPA amendments £587.2m2 £675.3m3
Net cash flow from operations
 £132.4m £111.9m £126.5m £111.9m
Net cash £266.8m £221.9m

1 Includes value associated with work to be performed under the interim LTPA arrangement for twelve months beginning 1 April 2018
2 Includes share of Joint Ventures
3 FY17 orders included £109m 11-year NCSISS contract and £55m Strategic Enterprise contracts

Delivered a second year organic of growth

  • Revenue up 6%, 3% on an organic basis
  • Underlying operating profit up 5%, assisted by £8.7m non-recurring trading items (2017: £7.4m), broadly flat on an organic basis
  • Solid orders performance, excluding multi-year orders in FY17
  • 103% underlying cash conversion pre-capex
  • Underlying EPS up 7%; 5% increase in full year dividend

Driving growth through strategy implementation

  • Selected to be Engineering Delivery Partner for UK Ministry of Defence (MOD)
  • Down-selected on first phase of robotics program of record for US Department of Defense (DoD)
  • Grown international share of revenue from 21% to 27% in 2 years
  • Announced acquisition of E.I.S. Aircraft Operations, a German airborne training business

Priorities for FY19

  • Conclude repricing of the Long Term Partnering Agreement (LTPA) with UK MOD
  • Win further campaigns and build on successful down-selects
  • Accelerate international growth in selected countries
  • Continue investment driving sustainable growth

Steve Wadey, Group Chief Executive Officer said:

“This has been a year of significant progress for QinetiQ. We delivered a strong operational performance in FY18, with a second successive year of organic growth and an increasing contribution from our international businesses overcoming the profit headwinds in the UK on single-sourced work. Our strategy is delivering as we continue to transform QinetiQ into a more customer focused and international company, well placed to deliver further long-term growth. With more than two thirds of our FY19 revenue under contract, we enter the year in a position of strength and are maintaining expectations for Group performance"

Interims results presentation:

There will be a presentation of the interim results at 0900 hours UK time on 24 May 2018 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 through which participants will be able to ask questions will be available by dialling +44 (0)20 3936 2999 (access code: 008838).

For further information please contact: 

David Bishop, Group Director Investor Relations and Communications: +44 (0) 7920 108675
Ian Brown, Group Head of Investor Relations: +44 (0) 7908 251123
Jon Hay-Campbell, Group Head of External Communications: +44 (0) 7500 856953