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Interim Results for the half year ended 30 September 2011


Restoring Strength, Building Value

  H1 FY2012 H1 FY2011 Change
Business Performance
Revenue £739.6m £864.9m (14)%
Organic change at constant currency (9)% 6%  
Underlying operating profit* £82.6m £64.9m 27%
Underlying operating margin* 11.2% 7.5%  
Underlying profit before tax* £74.9m £51.6m 45%
Underlying net cash from operations (post capex)* £157.1m £149.9m 5%
Underlying cash conversion ratio* 190% 231%  
Net debt £145.3m £327.0m 56%
Underlying earnings per share* 9.2p 6.5p 42%
Dividend per share 0.9p nil  
Statutory Reporting
Operating profit/(loss) £79.7m £(24.3)m  
Profit/(loss) before tax £80.5m £(37.6)m  
Earnings per share 10.2p (6.4)p  


  • Self-help delivering a stronger QinetiQ:
    • Group margin* uplift driven by UK Services and Global Products
    • US Services successfully integrated under new leadership
    • MOD customer satisfaction ranking improved from 17th to 3rd position over 2 years
    • NASA performance scores running at over 90%
  • Value being created:
    • Continued strong cash generation reduces gearing ratio† to 0.6x (31 March 2011: 1.4x)
    • Underlying earnings per share* up by 42%
    • Board’s expectations for the current year upgraded by approximately 20%
    • Low visibility and uncertainty leaves outlook beyond the current year unchanged
    • Payment of an interim dividend of 0.9p, reflecting confidence in the medium term
Leo Quinn, Chief Executive Officer said: “Rapid execution of our self-help plan is building a stronger QinetiQ. The Group is better focussed on delivering its customers’ changing needs, and this is starting to come through in its underlying performance.

“The Board believes that, absent any material change in customer requirements, the Group will exceed its original expectations for the current year by approximately 20%, although market uncertainties mean that visibility beyond the current year remains lower than normal. Our confidence in QinetiQ’s ability to build significant value over the medium term is demonstrated by the payment of the interim dividend of 0.9p.”

Other information

There will be a presentation of the interim results to analysts at 0900 hours UK time on 23 November 2011 at UBS Ground Floor Conference Centre, 1 Finsbury Avenue, London, EC2M 2PP. An audiocast of the event can be heard using the following numbers:

  • UK Freephone:         0800 634 5205
  • Local London:            0208 817 9301
  • International:           +44 208 817 9301

* Definitions of underlying measures of performance can be found in the glossary. Underlying financial measures, excluding amortisation of intangible assets arising from acquisitions and specific non-recurring items, are presented as the Board believes these provide a better representation of the Group’s long-term performance trends. Specific non-recurring items include amounts relating to: restructuring costs; pension curtailment gains; contingent payments on acquisition treated as remuneration; net gains/losses in respect of previously capitalised DTR-programme bid costs; impairment of property, plant and equipment; impairment of intangible assets; gain/(loss) on business combinations and divestments; unrealised impairments of investments; and tax thereon.

† The gearing ratio (adjusted net debt:EBITDA) is the ratio of net borrowings at the balance sheet date translated at average exchange rates for the period to EBITDA generated in the 12 month period to the balance sheet date and calculated in accordance with the Group’s credit facility ratios.

For further information please contact:

Media relations:   
QinetiQ press office  +44 (0) 1252 393500
Liz Morley, Maitland  +44 (0) 7798 683108
Brian Hudspith, Maitland  +44 (0) 7771 825606
Investor relations:   
David Bishop, QinetiQ 
+44 (0) 7920 108675