News

Results for six months to 30 September 2021 (‘H1 2022’)

	Statutory results		Underlying* results
	H1 2022	H1 2021	H1 2022	H1 2021
Revenue	£600.1m	£603.2m	£600.1m	£603.2m
Operating profit	£42.9m	£61.6m	£53.4m	£69.0m
Profit after tax	£23.8m	£74.2m	£46.6m	£57.6m
Earnings per share	4.2p	13.0p	8.1p	10.1p
Interim dividend per share	2.3p	2.2p	2.3p	2.2p
Total funded order backlog			£3,007.6m	£3,087.2m
Total orders in the period			£677.8m	£561.6m
Net cash flow from operations	£66.1m	£91.8m	£70.2m	£92.7m
Net cash	£139.2m	£112.7m	£139.2m	£112.7m

* Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary

^ To be consistent with revenue reporting prior year orders has been restated to exclude £1.3m of contribution from Joint Ventures

Good underlying performance impacted by two discrete short-term issues

-	Orders up 25% on an organic basis, 21% after disposals; with robust backlog of £3.0bn
-	Revenue up 3% on an organic basis, flat after disposals in the prior year
-	Underlying operating profit of £53.4m, after £14.5m write-down on a large complex project
-	Statutory operating profit down 30% due to the write-down
-	Underlying EPS of 8.1p; 2.3p interim dividend declared – one third of FY21 dividend
-	On-track to deliver in line with FY22 guidance provided in our October Trading Update

Strategic progress and robust plan to resolve issues

-	Secured £678m orders across the Group including $184m orders won in US
-	Excellent growth in Australia and the UK, with revenue growth of 19% and 11% respectively
-	Major contracts performing well e.g. MSP, LTPA and EDP
-	Write-down due to risk exposure on a large complex project
-	Response to US customer’s mission pivot and COVID delivery challenges

Priority to deliver FY results whilst continuing to implement multi-domestic growth strategy

-	Deliver operational performance, with >90% revenue under contract
-	Deliver complex project recovery plan to conclusion in-year
-	Recover US revenue performance, targeting second half revenue in line with FY21 H2
-	Invest in new customer solutions and strategic acquisitions
-	Focus to drive profitable growth into our >£20bn addressable market

Steve Wadey, Group Chief Executive Officer said:

“Overall I am pleased with the continued strategic momentum through the first half of the year. We continue to deliver for our customers around the world, protecting lives, defending sovereign capability and securing the vital interests of our customers. We have delivered good underlying performance with orders up 25% and revenue up 3% organically and we have achieved a number of strategic wins. Whilst it is disappointing that this good performance has been impacted by two discrete short-term issues, we have a robust plan to resolve both in the second half. We remain focused on delivering the full year whilst continuing to implement our strategy to build an integrated global defence and security company, through both organic growth and strategically-aligned acquisitions.”

Interims results presentation:

Management will host a socially distanced presentation at 09:30 hours GMT on 11 November 2021 at One Moorgate Place, London, EC2R 6EA; the presentation will also be shared as a live webcast. To register to join this event, please see details on our website here:

https://www.qinetiq.com/en/investors/results-reports-and-presentations/interim-results-webcast-2021

You are warmly invited to join, either in person or virtually.

About QinetiQ:

QinetiQ (QQ.L) is a leading science and engineering company operating primarily in the defence, security and critical infrastructure markets. We work in partnership with our customers to solve real world problems through innovative solutions delivering operational and competitive advantage. Visit our website www.QinetiQ.com. Follow us on LinkedIn and Twitter @QinetiQ. Visit our blog www.QinetiQ-blogs.com.

For further information please contact:

John Haworth, Group Head of Investor Relations:                                        +44 (0) 7920 545841

Chris Barrie, Citigate Dewe Rogerson (Media enquiries):                             +44 (0) 7968 727289