Headlines
Good trading result in challenging markets
o Solid revenue and operating profit performance
o Continued high cash conversion
Reduced order intake during H1 against a strong comparator period
o Approximately two thirds of the orders reduction due to timing of multi-year contract awards
o £153m 5-year UK MOD renewal for aircraft engineering services awarded after period end
o Some de-scoping and delay to orders in tough and uncertain markets
o 90% of FY16 revenue under contract at start of H2, consistent with prior period
Continued focus on shareholder returns
o 16% increase in underlying eps* due to lower finance costs and reduced share count
o 6% increase in interim dividend in line with commitment to a progressive dividend
o £50m share buyback over next 12 months, consistent with capital allocation policy
QinetiQ has core competencies well matched to emerging themes in global markets
o Priorities to improve customer focus and competitiveness
Steve Wadey, Group Chief Executive Officer said:
"This is a good trading result in a challenging market environment and our expectations for Group performance in the current financial year remain unchanged."
"Whilst markets are tough and uncertain, I am convinced that we have the core competencies required to help our customers deliver both more for less and respond to increasing security threats through innovation. To address this, I have identified clear priorities to improve our customer focus and competitiveness that will build a stronger future for QinetiQ."
