QinetiQ issued its H120 results this morning, demonstrating that revenue increased from £420.2m to £486.5m (+16% y-o-y) and underlying net income rose from £46m to £52m (+14% y-o-y).
Organic revenue growth was 10%, driven by good performance in both its divisions. Acquisition performance has been strong, including 50% growth in QinetiQ Target Systems revenue. Also notable is that 96% of forecast FY20 revenue is now under contract (H1 2019: 90%), illustrating the defensive qualities and revenue visibility of the company. Management is maintaining expectations for FY20 operating profit. Steve Wadey, CEO, gave this outlook: “Our focus for the remainder of the year is to win further campaigns globally, successfully deliver key programmes, and complete the acquisition of MTEQ to transform the scale of our US operations as we build an integrated, global defence and security company.”
Author: Max Hayes