|Organic change at constant currency||(11)%||5%|
|Underlying operating profit*||£161.3m||£145.4m|
|Underlying operating margin*||11.0%||8.5%|
|Underlying profit before tax*||£118.3m||£114.6m|
|Underlying net cash from operations* (post capex)||£235.4m||£265.8m|
|Underlying cash conversion ratio*||146%||183%|
|Underlying earnings per share*||14.6p||14.2p|
|Dividend per share||2.90p||1.60p|
|Profit before tax||£331.6m||£26.6m|
|Earnings per share - basic||39.6p||0.8p|
Self-help programme achieved:
- Group margin uplift driven by UK Services and Global Products;
- US Services restructuring completed;
- Continuing strong cash generation reduces net debt to £122m; gearing ratio† 0.5x;
- Early repayment of $177m private placement debt leading to accelerated interest of £27m;
- Pension deficit reduced to £31.5m (31 March 2011: £124.6m) following the change to CPI as the inflation index and £40m cash injection;
- MOD agreement to modernise Special Shareholder rights.
Next phase of development launched:
- First phase has identified strong core, new businesses and value opportunities;
- Segmented portfolio will be actively managed to deliver rising sustainable earnings;
- Organic-Plus approach: investing in organic growth plus partnerships, alliances and selective acquisitions.
- Continuing market uncertainty, particularly in the US, leaves outlook for current year unchanged;
- Final dividend: 2.00p (2011: 1.60p) reflecting achievement of self-help programme and confidence in the next phase of development.
- Commenting on the results, Leo Quinn, Chief Executive Officer said:
“Two years ago we began QinetiQ’s transformation with our 24 month self-help programme. During that time, despite market headwinds, we have focused the portfolio, upgraded the leadership to drive a more competitive commercial culture and rebuilt the balance sheet. These achievements provide a strong foundation from which to launch our next phase, the Organic-Plus programme.
“At the heart of QinetiQ is a strong defensible core, built on the deep domain expertise of its people. We will continue to invest in this core as the changing needs of our customers provide opportunities for medium-term growth. Our portfolio also contains a number of smaller businesses, some of which could have considerable potential for the future.
“Given the continuing uncertainty and lower than normal visibility in our markets, our expectations for trading performance in the current year remain unchanged. However, the success of our self-help programme in restoring both the balance sheet and portfolio to strength gives the Board confidence in QinetiQ’s ability to build significant value over the next phase of its development.”
QinetiQ will hold an investor day on 26 September 2012. For further information and to register interest see: www.QinetiQ.com/investors.
For further information please contact:
|QinetiQ press office||+44 (0) 1252 393500|
|Liz Morley, Maitland||+44 (0) 7798 683108|
|Sam Turvey, Maitland||+44 (0) 7725 684028|
|David Bishop, QinetiQ||+44 (0) 7920 108675|
*Definitions of underlying measures can be found in the glossary.
† The gearing ratio is net debt to adjusted EBITDA calculated in accordance with the Group’s credit facility ratios.