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News

Focused on sustainable global growth

19/05/2022

Unaudited Results for the year ended 31 March 2022

Statutory results Underlying* results
  FY22 FY21¹ FY22 FY21
Revenue £1,320.4m £1,278.2m £1,320.4m £1,278.2m
Operating profit £117.5m  £108.7m  £137.4m  £151.8m
Profit after tax £90.0m £121.9m £118.1m £126.1m
Earnings per share 15.7p 21.4p 20.6p 22.1p
Full year dividend per share 7.3p 6.9p 7.3p 6.9p
Funded order backlog £2,828.8m £2,944.1m
Orders2 £1,226.6m £1,149.4m
Net cash inflow from operations
£209.7m £194.4m £215.3m £199.0m
Net cash £225.1m £164.1m

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

1 Prior year comparatives have been restated due to a change in accounting policy in respect of software implementation costs (see note 1 to the financial statements).

2 To be consistent with revenue reporting, prior year orders has been restated to exclude £1.7m of contribution from Joint Ventures.

3 New cash conversion definition: Operating cash flow pre-capex divided by EBITDA.

4 Excluding LTPA amendments, booked in FY16 and FY20.

Good progress with strong second half momentum

  • Orders up 9% on an organic basis with robust backlog
  • Revenue up 5% on an organic basis
  • Underlying operating profit of £137.4m, equivalent to 11.4% margin before a £14.5m write-down, within our short-term guidance
  • 114% underlying cash conversion (FY21: 98%)³ 26% ROCE
  • Underlying EPS of 20.6p; 7.3p full year dividend declared – growth of 6%

Continued discipline in execution of growth strategy

  • Secured record order intake⁴ across the Group at £1.23bn
  • Excellent revenue growth, with Australia up 26% and UK up 12%
  • Slower US recovery but momentum building, orders up c.20% and new leadership team
  • Delivered 75% revenue growth over last 6 years

Customer focus to drive c.75% growth in next 5 years

  • Maintaining Group expectations for FY23, with £900m revenue under contract
  • Heightening market needs for our distinctive offerings
  • Investing in differentiated solutions and strategic acquisitions
  • Enhancing focus on ESG and enabling our people to thrive

Steve Wadey, Group Chief Executive Officer said:

“Throughout the last year our people have continued to partner with our customers to deliver high-value solutions critical to current and future national defence and security challenges. Following a challenging first half we delivered a strong second half and achieved good underlying operational performance, ahead of market expectations. Recent world events have reinforced the long-term needs of our customers, including capabilities utilising differentiated technology, test and training solutions which are directly aligned with our strategy. With a clear focus on disciplined execution of our strategy, increasing demand for our solutions and good revenue coverage, we have positive momentum and are on-track to deliver sustainable global growth.”

Preliminary results presentation:

Management will host a presentation at 09:30 hours BST on 19 May 2022 at Numis’ auditorium, 45 Gresham Street, London EC2V 7BF. 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/full-year-results-webcast-2022 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 and security 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

Lorna Cobbett, Citigate Dewe Rogerson (Media enquiries): +44 (0) 7771 344781