First Quarter Trading Update 2018
Underlying trading for the Group was as expected during the first quarter, with no change to expectations for Group performance in the current financial year.
The EMEA Services division continued to deliver against our growth strategy, increasing both revenue and orders organically against the same period last year. Revenue under contract is in line with our expectations for this point of the year.
We continue to pursue business winning campaigns based on major government-funded programmes and made good strategic progress in the period including a number of contract awards from the UK Ministry of Defence (MOD):
- The EMEA Services division won the competition for the Battlefield and Tactical Communications & Information Systems (BATCIS) contract, worth up to £95 million over five years. BATCIS is our largest competitive win since the implementation of our new growth strategy and a demonstration of our increasing customer focus.
- Following a competitive process, we won a five year contract to build and maintain a synthetic environment to provide test and reference services for a new ground-based air defence system.
- With our partners Atkins and BMT, we have been confirmed preferred bidder by the UK MOD for the Engineering Delivery Partner (EDP) programme.
The Global Products division, which has shorter order cycles than EMEA Services, has continued to grow orders and revenues organically during the period.
- QinetiQ North America delivered a good performance driven by demand for our robots and survivability products.
- Following its successful integration into the Group, QinetiQ Target Systems has continued to grow and is leveraging wider Group capabilities to enhance its product portfolio. It reached a significant milestone in the development of a new supersonic aerial target and won its first orders for an enhanced Banshee aerial target from a Scandinavian customer.
QinetiQ's 2018 Annual General Meeting (AGM) will be held at 11am today at the offices of Ashurst LLP, Broadwalk House, 5 Appold Street, London.
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
QinetiQ press office: +44 (0) 1252 3935
Throughout this document, certain measures are used to describe the Group’s financial performance which are not recognised under IFRS or other generally accepted accounting principles (GAAP). The Group’s Directors and management assess financial performance based on underlying measures of performance, which are adjusted to exclude certain ‘specific adjusting items’. In the judgment of the Directors, the use of adjusted performance measures (APMs) such as underlying operating profit and underlying earnings per share are more representative of ongoing trading, facilitate meaningful year-to-year comparison and, therefore, allow the reader to obtain a fuller understanding of the financial information. The adjusted measures used by QinetiQ may differ from adjusted measures used by other companies. Details of QinetiQ’s APMs are set out in the glossary to the document.
Year references (FY19, FY18, 2019, 2018) refer to the year ended 31 March.