QinetiQ on track to make £106m profit target
Defence manufacturer QinetiQ's share price was flat today after it said in a trading update that its profits would be in line with expectations for the full financial year.
The figures
The defence contractor said it was on track to make profits of around £106m this year. It said its European revenues were "steady" and that revenue in its global products division was "slightly ahead" of this time last year due to improved orders in North America.
Why it's interesting
The former Ministry of Defence research agency was privatised over ten years ago and was recently given a £1bn extension to its contract with the government to maintain the MoD's testing ranges. The contract will now run until 2028. But the group has also been diversifying with a £57m acquisition of Meggit Target Systems, which makes drones that can be shot at during military target practice.
What QinetiQ said
The group said it had made "encouraging progress" during the third quarter on implementing its growth strategy and that underlying trading was as expected.
"Overall, the board's expectations for group performance in the current financial year remain unchanged," QinetiQ said.
What analysts said
Roger Johnston, analyst at Edison Investment Research, said the group's strategy was "progressing well".
"With overall performance continuing in-line with expectations, the £50m share buyback progressing and a strong balance sheet supporting the increased investment, we see QinetiQ as extremely well positioned to deliver on the strategy," Johnston said.