QinetiQ today issues a short trading update before entering its closed period for the half year ending 30 September 2017.
Trading has been in line with expectations and the outlook for overall Group performance this financial year is unchanged.
The EMEA Services division started the year in a strong position. Following stronger order intake in the second quarter, FY18 revenue under contract is as expected at this stage in the financial year. We reiterate our guidance for modest growth in revenue in FY18.
The Group’s Global Products division has been trading in line with expectations during the first half of the year. As a result of its contracted orders and pipeline of opportunities, as well as the anticipated full year contribution from QinetiQ Target Systems, the division is expected to grow in FY18.
QinetiQ continues to make progress towards becoming a more customer focused and international company. In both the UK and internationally we are particularly well placed to help customers meet the challenges of increasing capabilities while addressing budgetary concerns, and this is reflected in recent key contract awards.
In our UK home market, as part of our strategy to modernise test and evaluation, we secured:
- An £8m order from UK Ministry of Defence (MOD) to provide naval combat systems expertise for Type 26 Global Combat Ship added to the £110m 11-year Naval Combat System Integration Support Services (NCSISS) contract agreed with the MOD this time last year
- An order from Boeing, worth approximately £25m, to continue to deliver wind tunnel testing for their commercial aircraft development until 2024
In our US and Australian home markets, as part of our strategy to build an international company, we were awarded:
- A significant order for aircraft launch and recovery equipment for the new class of US Navy aircraft carriers
- An AU$8m order to manage mine warfare maintenance facilities at HMAS Waterhen for the Australian Department of Defence
For further information please contact:
David Bishop, Group Director Investor Relations and Communications: +44 (0) 7920 108675
Investor Relations: Ian Brown, Group Head of Investor Relations: +44 (0) 7908 251123
Media Relations: QinetiQ press office: +44 (0) 1252 393500
QinetiQ's interim results for the half year ending 30 September 2017 will be announced on 16 November 2017.