Tom Keighley

Defence agency report profit from "challenging markets"

Hampshire-based defence and security specialists, QinetiQ have posted a 21% rise in profits, despite current “challenging markets.”

The former state-owned defence research agency said delays in US contracts with the Department of Defense and other federal civil business were causing uncertainty that would extend into 2013.

In a trading statement, QinetiQ also said cost cutting across the Ministry of Defence will increase requirements for support from the private sector.

Revenues fell from £739.6m a year ago, to £685.5m, representing a fall of 7%.

Leo Quinn, QinetiQ Chief Executive Officer said: “QinetiQ has delivered a strong first half performance in challenging markets and achieved a position of net cash on its balance sheet – an important milestone in the transformation of the Group.

“We are now implementing our next strategic phase, the Organic-Plus programme announced in May 2012, to grow QinetiQ’s sustainable earnings and build value over the medium term.

“Visibility remains much lower than usual, particularly in the US. Despite this uncertainty, with the benefit of the strong first half performance the Board believes the Group as a whole will perform in line with its expectations for the year, absent any material change in customer requirements.”

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