Interim results for the half year ended 30 September 2017

Delivering our strategy and investing for growth

Results for six months to 30 September 2017

  Statutory results Underlying* results
  H1 2018 H1 2017 H1 2018 H1 2017
Revenue £392.5m £361.8m £392.5m £361.8m
Operating profit £67.5m £51.7m £57.5m £51.9m
Profit after tax £64.1m £49.5m £51.1m £45.5m
Earnings per share 11.3p 8.6p 9.0p 7.9p
Interim dividend per share 2.1p 2.0p 2.1p 2.0p
 
Total funded order backlog £2,042.2m £1,270.6m
Total orders in the period  £276.3m £376.8m
Net cash flow from operations  £35.7m £60.6m
Net cash flow from operations (post-capex)   £4.7m £50.9m
Net cash £194.7m £271.2m

Solid operational delivery

  • Order intake broadly in line with prior period which included £109m 11-year, NCSISS contract
  • 8% revenue growth; 3% on an organic basis
  • Underlying operating profit benefited from around £6.5m of non-recurring trading items
  • Cash flow reflects increased strategic capital expenditure and working capital movements
  • 5% increase in interim dividend

Strategic progress

  • Delivered a ballistic missile defence exercise for 8 NATO nations led by the US Navy
  • Record orders in Australia including first contract to manage mine warfare facilities
  • Announced a joint venture in UAE building on QinetiQ Target Systems acquisition
  • 26% of revenue generated from outside the UK, up from 21% in the prior period

Focus on delivery of FY18

  • Strategy implementation is key to driving growth in a rapidly changing trading environment
  • 89% of FY18 revenues under contract
  • Overall we are maintaining expectations for Group performance in FY18

Steve Wadey, Group Chief Executive Officer said:

“We have delivered a solid operational performance in the first half of the year despite challenging markets, achieving a 3% increase in organic revenue which builds on last year’s growth.”

“We are encouraged by the progress we have made to date. Over the medium term, investment in our strategy will enable us to help customers respond to their immediate security and economic challenges, win longer term programmes and contracts, as well as increase the Group’s share of revenue from international markets."

Interims results presentation:

There will be a presentation of the interim results at 0900 hours UK time on 16 November 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 through which participants will be able to ask questions will be available by dialling +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