QinetiQ annual profit drops as it takes write-down; backs outlook

(Alliance News) - QinetiQ Group PLC on Thursday said it remains confident for growth in revenue ...

Alliance News 19 May, 2022 | 11:12AM
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(Alliance News) - QinetiQ Group PLC on Thursday said it remains confident for growth in revenue in the next five years after posting a "strong performance" in its recently ended financial year, though profit did decline.

QinetiQ is a science and engineering company operating primarily in the defence, security and critical infrastructure markets.

For the financial year that ended on March 31, revenue was up 7% to GBP1.32 billion from GBP1.28 billion in the previous year. However, pretax profit fell to GBP119.7 million from GBP142.6 million.

The firm noted it took a GBP14.5 million write-down on a complex project.

QinetiQ's dividend for the financial year amounted to 7.3 pence per share to 6.9p.

Chief Executive Officer Steve Wadey said: "Throughout the last year our people have continued to partner with our customers to deliver high-value solutions critical to current and future national defence and security challenges. Following a challenging first half we delivered a strong second half and achieved good underlying operational performance, ahead of market expectations."

The company said it remains confident to deliver in line with current internal expectations for the next financial year, with mid-single digit organic revenue growth and operating profit margin towards the middle of 11-12% expected range. Its outlook is supported with GBP900 million revenue under contract and "positive" momentum.

Looking further ahead, QinetiQ expects to deliver 75% revenue growth in the next five years, with revenue of more than GBP2.3 billion in 2027 and beyond.

Shares in QinetiQ were down 5.5% at 345.39 pence each on Thursday in London.

By Xindi Wei; xindiwei@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
QinetiQ Group PLC 369.40 GBX -1.39 -

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