Preliminary Financial Results for year ending 31 March 2017

Good operational delivery and strategic progress

  Statutory results Underlying* results
  2017 2016 2017 2016
Revenue £783.1m £755.7m £783.1m £755.7m
Operating profit £132.7m £75.3m £116.3m £108.9m
Profit after tax £123.3m £106.1m £103.8m £95.9m
Earnings per share 21.5p 18.1p 18.1p 16.3p
Full year dividend per share 6.0p 5.7p 6.0p 5.7p
 
Total orders £1,676.7m £659.8m
Orders excluding LTPA amendment £675.3m £659.8m
Net cash inflow from operations (pre-capex) £111.9m £133.4m
Net cash inflow from operations (post-capex) £79.0m £103.6m
Cash conversion ratio (post-capex) 68% 95%
Net cash £221.9m £274.5m

Headlines

  • Good operational delivery in FY17
  • High quality growth in total backlog from £1.3bn to £2.2bn
  • 4% year-on-year revenue growth; 1% increase on an organic basis* at constant currency
  • Solid operating profit enhanced by £7.4m of non-recurring trading items
  • Cash conversion included c£30m working capital unwind (half related to non-recurring items)
  • 5% increase in dividend; £50m share buyback completed
  • Strategic progress
    • Secured £1bn amendment to the Long Term Partnering Agreement with the UK MOD
    • Established an International business and completed two acquisitions – of Meggitt Target Systems and RubiKon Group in Australia – to support international growth
    • Global agreement for next generation satellite receivers
    • Invested £20m in people, technology and campaigns, funded by operational efficiencies
  • Focus on delivery of FY18
    • Strategy implementation key to driving growth in a rapidly changing trading environment
    • 74% of FY18 revenue under contract, consistent with the previous year
    • Maintaining expectations for Group performance in FY18

Steve Wadey, Chief Executive Officer said:

“FY17 has been a year of building momentum for QinetiQ during which we achieved both good operational performance and significant progress in the implementation of our strategy. Operational achievements included delivering organic revenue growth for the first time for a number of years and the near doubling of the total Group backlog. To support QinetiQ’s future growth, we completed our first two acquisitions and, with the LTPA amendment with the UK Ministry of Defence, secured the largest and most significant contract since privatisation.

“Rapidly changing dynamics in defence and security markets are presenting both opportunities and challenges for our industry. Although demanding, this environment is one in which QinetiQ has the potential to thrive. As a result, we are looking forward to the future with confidence and are maintaining expectations for Group performance in FY18.”

 

Results Centre

Other information

There will be a presentation of the preliminary annual results to analysts at 0900 hours UK time on 25 May 2017 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 will be available on +44 (0)20 3059 8125 (confirmation: QinetiQ).

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