QinetiQ increases its 2016 interim dividend by 6%

DividendMax Ltd.

QinetiQ increases its 2016 interim dividend by 6%


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

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." 

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