Interim results for the half year ended 30 September 2016

17 Nov 2016

Continuing operational delivery and progress implementing strategy

QinetiQ is a leading science and engineering company operating primarily in the defence, security and aerospace markets. We work in partnership with customers to solve real world problems through innovative solutions, delivering operational and competitive advantage. Today QinetiQ publishes its interim results for the half year ended 30 September 2016.

H1 2017 H1 2016
Business Performance
Orders £376.8m £228.4m
Revenue £361.8m £370.9m
Underlying operating profit* £51.9m £49.8m
Underlying operating margin* 14.3% 13.4%
Underlying profit after tax* £45.5m £43.2m
Underlying net cash flow from operations (post capex)* £50.9m £46.9m
Underlying cash conversion ratio* 98% 94%
Underlying earnings per share (eps)* 7.9p 7.3p
Net cash £271.2m £181.5m
Dividend per share 2.0p 1.9p
Statutory Reporting
Operating profit £51.7m £48.9m
Profit attributable to shareholders £49.5m £42.0m
Total earnings per share 8.6p 7.1p

* Definitions of underlying measures of performance can be found in the glossary

Headlines

Delivered solid operational performance in H1 FY17
Stable revenue and profit with continued high cash conversion
5% increase in interim dividend in line with commitment to a progressive dividend; £17m remaining of the share buyback programme
Focus on delivery of FY17
94% of FY17 revenue under contract, consistent with prior period (90%)
Maintaining expectations for Group performance in the current financial year
Progress implementing strategy
Orders increase due to £109m 11-year renewal for UK Naval Combat System Integration Support Services (NCSISS) and $28m US aircraft carrier orders
Transformation programme on track to improve customer focus and competitiveness

Steve Wadey, Group Chief Executive Officer said:

“We have secured good order intake, delivered a solid operational performance and demonstrated encouraging progress in the implementation of our strategy to drive future growth. We are on track with transforming the company and have secured the renewal of NCSISS for 11 years creating a UK centre of excellence for maritime mission systems and taking a significant step forward in modernising vital test and evaluation services in the UK.”

Results Centre

Other information

There will be a presentation of the interim results to analysts at 0900 hours UK time on 17 November 2016 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 by dialling +44 (0)20 3059 8125 (confirmation: QinetiQ).

About QinetiQ

QinetiQ is a leading science and engineering company operating primarily in the defence, security and aerospace 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:

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
QinetiQ People Who Know How
Interim results for the half year ended 30 September 2016