In its results for H1 ending September 2018, QinetiQ reported organic growth of 8% in revenue due to a gain in EMEA services and Global Products. Cash performance was strong, underlying operating profit remained stable and interim dividend stayed at 2.1p.
Several campaign wins include: all the engineering services for the UK MOD’s procurement agency, a battlefield communications programme worth c. £95m and a US robotics program worth a record c. $44m.
Acquisitions include EIS Aircraft operations and an 85% stake in Inzpire. International share of revenue has grown from 26% to 31% over the last year.
Regarding its Long Term Partnering Agreement, QinetiQ aims to finalise negotiations with the UK MOD in H2.
Steve Wadey, CEO of QinetiQ, said: “We continue to take steps to mitigate the effects of changes in the UK single source profit rate and expect this headwind to moderate in FY20 and beyond, enabling growing revenue to deliver increased profitability.”