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Investor Overview

Who we are

QinetiQ is a leading science and engineering company operating primarily in the defence, security and critical infrastructure markets. We are an information, knowledge and technology based company with the breadth and depth of more than 6,000 highly dedicated employees.

What we do

We apply our unique technical expertise across the product life-cycle, helping our customers to create, test and use defence and security capabilities. Not only can we develop cutting-edge technology and turn it into a capability, we can also tell customers if that capability will work when it is critically needed and ensure they are trained and operationally ready to use it when it matters.

Anticipating the current, emerging and future threat environment and proactively understanding our customers’ needs to provide mission-led innovation is critical to our success.

Our purpose

QinetiQ is dedicated to protecting lives, defending sovereign capability and securing the vital interests of our customers.

Where we operate

We are a global company with operations around the world. Our home countries, where we have more than 250 people in-country are the UK, the US and Australia. Our priority countries for future growth are Canada, Germany and Belgium.

Where we operate

A core pillar of our strategy is to grow our international revenue to 50% of Group. Since we launched our strategy in 2016 we have grown our international revenue from 21% to 31% of Group revenue, supported by both organic and inorganic growth.

How we are structured

We report through two divisions; EMEA Services and Global Products.

EMEA Services

Revenue: £797.4m (FY19: £687.7m) / Underlying operating profit: £100.6m (FY19: £96.8m)

Combines world-leading expertise with unique facilities to generate and assure capability. It does this through capability integration, threat representation and operational readiness, underpinned by long-term contracts that provide good revenue visibility and cash generation. EMEA Services constitutes four business units:

EMEA Services

Global Products

Revenue: £275.5m (FY19: £223.4m) / Underlying operating profit: £32.6m (FY19: £28.1m)

Delivers innovative solutions and products to meet customer requirements. It undertakes contract-funded research and development, developing intellectual property in partnership with key customers and through internal funding with potential for new revenue streams.Global Products constitutes four business units:

Global Products

Read more in our Annual Report and Accounts 2020.

Financial highlights

We delivered our fourth consecutive year of growth:


(FY19: £776.4m)


(FY19: £911.1m)

Underlying operating profit

(FY19: £124.9m1)

Statutory operating profit

(FY19: £114.8m1)

Underlying earnings per share

(FY19: 19.7p)

Statutory earnings per share

(FY19: 20.1p)

1 Prior year comparatives for 2019 have been restated due to a change in accounting policy in respect of leases.

Strategic highlights

We continued to make good strategic progress:

  • Completed two strategic acquisitions: Acquired Manufacturing Techniques Inc. (MTEQ) in the US for $105m and Newman & Spurr Consultancy (NSC) in the UK for £14m.
  • Improved employee engagement: Supported by engagement initiatives our employee engagement score increased by 10%.
  • Secured £168m of orders through Engineering Delivery Partner: Our innovative delivery model for engineering services continued to drive performance.
  • Won four long-term contracts: Secured four long-term contracts driving improved revenue visibility.
  • Grew international revenue to 31%: We have grown our international revenue from 21% to 31% of Group revenue in four years.
  • Continued to transform the Long Term Partnering Agreement: We successfully delivered the first year in the transition to new ways of working under the amended Long Term Partnering Agreement.

Read more in our Annual Report and Accounts 2020.

How we create value

We apply our fundamental strengths to support a relevant customer proposition that delivers value to all our stakeholders. By combining the expertise of our people and their customer focused approach with our unique facilities, we are able to support our customers in creating, testing and using critical defence and security capabilities. We are investing in both our people and facilities, ensuring our business model is sustainable and supports the long-term success of the Group.

Our Business Model

Read more in our Annual Report and Accounts 2020.

Our strategy

By focusing on our core offerings and target markets, we have an addressable market of over £8bn per annum. We have a clear strategy to access this addressable market and support sustainable long-term growth. The three pillars of our strategy are interlinked and mutually reinforcing.

Our Strategy

Transformation programme

Our strategy is supported by our ongoing transformation programme. The programme will create an efficient and effective organisation capable of supporting sustainable and profitable growth and is focused on driving performance, globalising and digitising our business.

Read more in our Annual Report and Accounts 2020.

A unique investment case

By focusing on our customer's needs and evaluating all investment opportunities with the same rigour we aim to deliver sustainable and attractive returns to shareholders. Our investment case is underpinned by five key attributes:

1. Unique capabilities

We operate unique capabilities around the world critical to maintaining national defence and security:

  • A key partner to UK defence
  • Leading technical expertise and state of the art facilities
  • High barriers to entry
2. Attractive markets

Growing exposure to attractive international markets:

  • Significant presence in high-growth home countries; the US and Australia
  • Ambition to increase international revenue to 50% of Group
  • Supported by our customer focused approach to delivering mission-led innovation
3. A clear strategy

We have a clear strategy to deliver long-term sustainable growth in our business focused on:

  • Leading and modernising UK Test & Evaluation
  • Building an international company
  • Innovating for our customers’ advantage
4. Attractive financials

Attractive financial characteristics supported by a strong balance sheet:

  • Long-term contracts provide good visibility
  • A cash generative business model and a clear capital allocation policy
  • Investing for growth with the ability to self-fund organic and inorganic investment
5. Sustainable growth

Delivering sustainable growth and returns to our shareholders:

  • Fourth year of organic revenue growth and second year of organic profit growth
  • Complemented with well performing acquisitions
  • Progressive dividend policy

Read more in our Annual Report and Accounts 2020.