Preliminary Results

Fifth year of growth – accelerating global ambition

Results

Results for the year ended 31 March 2021

  Statutory results Underlying* results
  2021 2020 2021 2020
Revenue £1,278.2m £1,072.9m £1,278.2m £1,072.9m
Operating profi £112.3m £117.6m £151.8m £133.2m
Profit after tax £124.7m £106.5m £126.1m £113.7m
Earnings per share 21.9p 18.7p 22.1p 20.0p
Full year dividend per share 6.9p 6.6p 6.9p 6.6p
 
Total funded order backlog     £2,944.1m £3,104.9m
Total orders1     £1,151.0m £2,227.4m
Orders excluding LTPA amendments1,2     £1,151.0m £972.1m
 
Net cash inflow from operations £198.0m £166.5m £199.0m £177.8m
Net cash     £164.1m £84.7m

Strong operational and financial performance despite COVID-19

  • Orders2 up 18%, 11% on an organic basis; largest annual order intake in a decade
  • Revenue up 19%, 10% on an organic basis
  • Underlying operating profit up 14%, 6% on an organic basis, underlying EPS up 11%
  • 131% underlying cash conversion pre-capex, 28% ROCE
  • Gain on disposals (£28m), offset by German goodwill impairment (£25m)

Customer focused strategy driven c.70% revenue growth in 5 years

  • Successfully completed LTPA 2-year transition programme & achieved full operating capability
  • Won major long-term contracts in UK, US and Australia
  • Continued optimisation of the portfolio with acquisition of Naimuri and three disposals
  • Grown international revenue from £158m to £420m in 5 years
  • Adapted to new ways of working and employee engagement up 6%

Increased ambition and evolved strategy to accelerate next 5 years of c.70% growth

  • Deliver consistent operational performance, with £800m revenue under contract for FY22
  • Pursue strategic campaigns and win further competitive projects through distinctive offerings
  • Invest in capabilities and digitisation to meet changing customer needs
  • Leverage global capability, disruptive innovation and strategic acquisitions
  • Focus to drive growth in our redefined >£20bn addressable market

Steve Wadey, Group Chief Executive Officer said:

Throughout this challenging year, QinetiQ has proven its commitment and focus to deliver critical defence and security capabilities for our customers around the world. With the health, safety and wellbeing of our employees at the centre of our decision-making, we have delivered a very strong set of operational and financial results, exceeding market expectations. We have delivered a fifth consecutive year of top-line growth, growing revenue by c.70% in the last 5 years.

With an evolved strategy, strong momentum and increased ambition shaped around the changing market dynamics and needs of our customers, I am excited about this next phase of sustainable global growth, to deliver our medium to long-term targets.

Preliminary results for the year ended 31st March 2021:

John Haworth, Group Head of Investor Relations: +44 (0) 7920 545841
Chris Barrie, Citigate Dewe Rogerson (Media enquiries): +44 (0) 7968 727289

20/05/2021

Prelims Statement

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