2017 in Review
Summary Annual Report and Accounts 2017
"Achieving our ambition of becoming the chosen partner requires a relentless focus on meeting the needs of our customers both in our home markets and overseas."
"Our strategy is inherently outward looking... we have been building positive momentum with its implementation during the year."
Chief Executive Officer
Underlying operating profit*£116.3m
Underlying earnings per share*18.1p
Basic earnings per share21.5p
Total operating profit£132.7m
Customer satisfaction (score out of 10)8.2
Employee engagement (score out of 1,000)596
Health and safety (Lost time incident rate (LTI))5.7
LTPA contract amendment£1bn
Value of contract amendment
Acquisition of Meggitt Target Systems
Customers in over 40 countries
Investing in our future£20m reinvested
* These are 'Alternative performance measures' - see the Annual Report glossary on page 151 for full details.
Our unique expertise allows us to...
QinetiQ is a company of scientists and engineers essential to sovereign capability. Customers choose us to protect, improve and advance their vital interests because of our:
People and domain know-how
Scientists, engineers and technicians.
of our people in the UK, and 75% in the US have national security clearance.
our low speed wind tunnel is one of just three in the world.
Our ocean basin at Gosport, Hampshire is the largest in Europe - it's the size of 16 Olympic swimming pools.
operate a sustainable business model...
Our unique position in the market
Our customers are predominantly government organisations in our home markets of the UK, US and Australia, with a growing international and commercial presence.
Sustaining our business model
Our business model is robust and sustainable because our knowledge base is constantly refreshed as we learn from experience, understand emerging customer needs and invest in our future. This enables us to both sustain existing capabilities and create new ones to ensure we respond to customer needs and stay ahead of the competition.
that creates value for our customers.
How we create value for our customers
We work across the equipment lifecycle from initial concept through to final disposal.
Our vision is to be: "The chosen partner around the world for mission-critical solutions, innovating for our customers' advantage."
To realise our vision, we are implementing three mutually-reinforcing strategic priorities designed to grow the Company.
Our three part strategy:
- Lead and Modernise UK Defence Test & Evaluation.
- Build QinetiQ as an international company.
- Invest in innovation and apply our core competence for customer advantage in defence and commercial markets.
Our values are the foundation:
With growing defence ambitions and close to the rapidly evolving Asia Pacific region, Australia is a particularly attractive market. During the year QinetiQ Australia continued to develop its core capabilities including extending its contract for the provision of Aircraft Structural Integrity services.
of operational efficiencies reinvested to drive growth.
supporting UK centre of excellence for maritime mission systems.
11-year commitment for modernisation of air ranges and Test Pilot School.
QinetiQ Target Systems90%
of revenue generated outsidethe UK.
programme to deliver defensive laser capability.
of secured navigation contracts awarded.
QinetiQ's multi-channel laser system, for coherent beaming is being developed as part of the Dragonfire consortium consisting of MBDA, QinetiQ and other industry partners.