News

	H1 2016	2015
Business Performance
Orders	£228.4m	£320.5m
Revenue	£370.9m	£365.6m
Underlying operating profit	£49.8m	£49.3m
Underlying operating margin	13.4%	13.5%
Underlying profit before tax	£49.7m	£46.0m
Underlying net cash from operations (post capex)	£46.9m	£57.0m
Underlying cash conversion ratio	94%	116%
Underlying earnings per share (eps)	7.3p	6.3p
Net cash	£181.5m	£205.7m
Dividend per share	1.9p	1.8p
Statutory Reporting
Operating profit from continuing operations	£48.9m	£48.0m
Profit attributable to shareholders	£42.0m	£32.9m
Total earnings per share	7.1p	5.1p

Headlines

• Good trading result in challenging markets

• Solid revenue and operating profit performance
• Continued high cash conversion

• Reduced order intake during H1 against a strong comparator period
  • Approximately two thirds of the orders reduction due to timing of multi-year contract awards
  • £153m 5-year UK MOD renewal for aircraft engineering services awarded after period end
  • Some de-scoping and delay to orders in tough and uncertain markets
  • 90% of FY16 revenue under contract at start of H2, consistent with prior period

• Continued focus on shareholder returns
  • 16% increase in underlying eps due to lower finance costs and reduced share count
  • 6% increase in interim dividend in line with commitment to a progressive dividend
  • £50m share buyback over next 12 months, consistent with capital allocation policy

• QinetiQ has core competencies well matched to emerging themes in global markets
  • Priorities to improve customer focus and competitiveness

Steve Wadey, Group Chief Executive Officer said:

“This is a good trading result in a challenging market environment and our expectations for Group performance in the current financial year remain unchanged.”

Whilst markets are tough and uncertain, I am convinced that we have the core competencies required to help our customers deliver both more for less and respond to increasing security threats through innovation. To address this, I have identified clear priorities to improve our customer focus and competitiveness that will build a stronger future for QinetiQ.

Other information

There will be a presentation of the preliminary results to analysts at 0900 hours UK time on 19 November 2015 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 will be available on the following numbers (confirmation: QinetiQ):

• UK/International: +44 (0)20 3059 8125
• US: +1 855 287 9927

For further information please contact:

Media relations:	QinetiQ press office	+44 (0) 1252 393500
	Chris Barrie, Citigate Dewe Rogerson	+44 (0) 7968 727289
Investor relations:	David Bishop, QinetiQ	+44 (0) 7920 108675