Congratulations to Qinetiq. A solid bet. Excellent products. Management only as good as staff. Staff very competent so will make management look good. management should not squander opportunity. Looks a good future.

Just a pity that the private investors (and the tax payer) got shafted throughout the whole episode.

ianayel,

Yes I received only 305 shares via HL, and 91! from my broker.

I intend to hold for the longer term, and my original intention was to stag the issue and keep the profit, so I will have to revise that.

Sometimes even stags have to patient. QQ should deliver solid growth and a reasonable income in the medium term. At least the company has backed its confidence at present with most employees putting money in. 57% of management & other employees now own stock(however as usual suspect that very high percentage owned by executive team)

Last Saturday's 'Daily Mail' had two articles.

One showed two main directors as having around 51 million in the then current stock valuation. ( It might have increased by 8%+ since then. A third top dog was mentioned. I cannot recall his estimated reward.

Rest of 4000 staff that took part in the private subscriptions in 2003 were estimated as having 15 million (as of last Friday night when the Saturday Mail went to print)

All menial staff were given 250 free shares at flotation (500) and could apply for further privileged application at the flotation rate which turned out to be 2.00.

Barclays appeared to be in favour of Qinetiq as a long termer. (I have mislaid their note, but will publish it when I have tidied up.)


stateside

All staff who were around in 2003 were also granted options worth 40 then. This now translates into 1700 shares at present value, when exercised.

mw

How do A shares and B shares awarded to staff now translate?

Trading generally subdued today ahead of inflation figures.

I talked to someone at Barclays again they regard qq. as a defensive share because of long term MOD contracts. Against that could be, at least a temporary upset, should they not win the training contract for which there is stiff competition.

stateside

Speculation quick to get off the mark?

"Following QinetiQ's IPO on Friday 10 February and in order to offer investors an
opportunity to gain exposure to the share, Societe Generale will issue two call
warrants on the research company on Wednesday 15 February 2006.


The two call warrants* will have exercise prices of 250p and 300p respectively.
Both will expire on 15 September 2006. Against the QinetiQ IPO price of 200p per
share, the issue prices will be 25p for the 250p warrant and 15p for the 300p
warrant....."

Any views?

winsorsmythe,

I agree re the long term benefits of holding, (and this 'stag' has nw dropped any immediate plans for selling!) and because this company is so uinique, it offers diversity to a portfolio IMO.

Interesting article on the Daily Mail today, pages 18 - 19, on the eheer greed of those involved in this flotation. It takes some believeing!

Extra 93m QinetiQ shares released after float

Mark Milner
Wednesday February 15, 2006
The Guardian


The Ministry of Defence and Carlyle group have released more shares in QinetiQ as part of the initial public offering after the company floated on the stock market last week with a near 1.4bn price tag.
The float was more than six times oversubscribed, according to industry sources, and yesterday investment bank Merrill Lynch International, which is acting as stabilisation manager, said another 46.3m shares valued at 92.6m would be released.

The sale of the additional shares will reduce the MoD's stake to 19.3% - held alongside a special share - while Carlyle will hold 10.5%.

mw

from earlier.

How do 1.00 A shares and B shares, awarded to staff who invested in 2003 translate into ordinary shares?


_____________________

I am surprised at the short term warrants. To me this is adding speculative froth to an already questionable situation. The warrants have to be redeemed in only seven months do they not?

Surely the company should be quietly getting on with building an efficient and effective business not becoming a vehicle for speculators? For the share price to go up after good trading figures and firm contract announcements is one thing - but to go from MOD to become an immediate vehicle for speculators?

If the 15p warrant is successful the value of the priciple directors' quick
50 million + will go up by another 50%.


stateside

stateside:

They translate at about the same rate as for the 40 options mentioned earlier, I understand.

mw

Thank you.

stateside

stateside/ mw:
I believe that there is some confusion around the convoluted mathematical equations ( not suprising being qq! ) that took the original 40 "gift" shares/options plus the 500 investment offered to all employees in 2003 and converted these into 40 unvested plus 1702.4 vested plus 250 shares. I guess someone will produce an old fashioned nomogram to demystify the conversion!!

I agree - the company should be left to do what it does best and build up an effective organisation

stateside:
thanks for pointing to Dail Mail. A little bit of old investigative news but interesting.

http://www.dailymail.co.uk/pages/live/articles/news/newscomment.html?in_article_id=377208&in_page_id=1787 will pull the article up.

Whilst all should be wary of the presence of politicians( particularly that group) they do gravitate to the gravy boat. As always caveat emptor.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/10/29/cnqinet29.xml


Qinetiq set to beat BAE to 10bn MoD deal

By Sylvia Pfeifer and Robert Watts
Last Updated: 12:12am BST 29/10/2006

A consortium led by Qinetiq, the former government-owned defence agency floated in February, is poised to pip BAE Systems to win a 10bn-plus contract for the Ministry of Defence.

The private finance contract, dubbed the Defence Training Rationalisation programme, is to train Britain's Armed Forces for the next 25 years. It has already proved highly political, pitting Wales against the West Midlands to secure the main base for the contract.

Two consortia have been vying for the deal. One, Metrix, is a joint venture between Qinetiq, in which the Government retains a 19.3 per cent stake, and Land Securities. It also includes a group of other defence and support services companies such as Serco and Raytheon. The other, MC3, is a joint venture between BAE Systems, VT Group and Carillion.
advertisement

MC3 plans to maintain and expand an existing training base at RAF Cosford in Shropshire, where more than 3,000 servicemen are employed. It has received the backing of Advantage West Midlands, the regional development agency.

But the Welsh Assembly is backing Metrix. It wants to use RAF St Athan in the Vale of Glamorgan as its base, and is promising to create about 5,000 jobs there if it wins.

Although the Ministry of Defence has yet to make a final decision, sources close to the bidders say that early indications are that the Metrix consortium has emerged as the leading contender to win the contract. If Metrix does emerge victorious, it is likely to prove controversial, especially given the government's stake in Qinetiq. It would be a significant boost to the company whose share price has remained below its original offer price.

Mark Pritchard, Tory MP for The Wrekin, said: "I believe Cosford should win if this decision is based on the provision of quality defence training and best value for the Treasury rather than it being made for political reasons to save marginal Labour seats in Wales."

Chris Bryant, Labour MP for Rhondda in South Wales, said: "I don't think it's been decided yet but I feel hopeful... What should be brought into consideration is the skills base locally, the quality of the bid itself and the cost to the MoD."

A spokesman for the Metrix consortium said: "Our teams have worked hard and now await the outcome."

Meanwhile, it has emerged that the PCS, one of the trade unions which represents employees, is to ballot its staff on industrial action within the next two weeks. "We are very concerned that this PFI deal will lead to job losses," said the official. "This is work of national security and should certainly not be put into the hands of a foreign contractor."

The PCS said that it initially planned to ballot its members after the contract had been awarded, but may bring a ballot forward.

Any thoughts/ will this materialise or has it already been handed to BAE (Considering that BAE do have strong contacts and probably could win this contract if they really wanted too.

How can the S.P. not respond to such a contract coup for QinetiQ? beating the likes of BAE for such valuable contracts surely must positively impact the S.P.

Be patient. QQ have a long way to run yet and there is a lot of good work in progress.

Good set of results

Labour to sell-off (almost all) remaining holding.
This company is really the Government research business (IMHO) and has a special position not enjoyed by other companies - so it's surprising the sp hasn't rocketed!

However, we must not forget the (US),Carlile debacle - wen't they sold a big chunk of this Brisith company at a price anyone would bite your hand off for? Why this wasn't offered to the Public I don't know - it was a done deal with Directors becomming very rich on paper almost overnight.

Am I wrong? - Answers please.

The Government is trying to raise money to pay for the Stamp-Duty fiasco ( that halted house-sales for a few months - Doh!). , , , and the 10p Tax grab ( aimed at the worst-off ).....and ( long-list here)!

It will be interesting to see if the Public gets a look-in. . . . . . . . . . don't be silly, this stock will go to party-backers, or maybe some trades union that's reasonably friendly towards Gordon . . . . can't be a long list, eh?

i don't know about all of the above but buying at 2.05 and already seeing a profit is happy days...

This hasn't really joined in the market rally over the summer.

Looks pretty good value having done a bit of research.

If defence budget is not cut and they gain new contracts, or another war starts it should fly up.

A tip by EK and a chart: http://uk-analyst.com/shop/page-article/action-article.show/id-130002538

QinetiQ upgraded to buy from neutral at BA-Merrill Lynch

This would affect QQ. adversely...


British efforts to tackle terrorism and radicalisation in Pakistan have been slashed by 110million due to a Foreign Office budget shortfall.

In an embarrassing admission, the Government yesterday revealed the vital cutbacks blaming the falling value of the pound for the decision.

It comes as Prime Minister Gordon Brown told MPs in the Commons that the crucible of terrorism on the Afghan-Pakistan border remained the number one security threat to the West.

Foreign Office minister Baroness Kinnock told peers at Lords question time last night: As a result of exchange rate movements, the FCO faces a shortfall in 2009-10 of an estimated 110 million; we estimate this shortfall will increase slightly in 2010-11.

'Programmes in Afghanistan in counter-narcotics have been cut, capacity building to prevent conflicts in Africa, counter-terrorism and radicalisation in Pakistan, the list goes on.

test

Test What ?

Good price now, get in before the septics invade Iran

Any views on these? They are obviously vulnerable to any defence cuts etc, but have recently agreed with unions the start of staff/pay rationisation.

Commenting on the union ballot on 28th June, CEO CEO Leo Quinn said, "This result is a credit to our
people in understanding the increasingly competitive nature of our markets.
Whilst this is only one step in a two-year journey, and it is too early to
quantify the impact, this agreement was integral to our plans announced last
month and will enable us to strengthen our UK business. Our priority is to
ensure that we retain the right expertise, flexibly deployed, to help customers
to derive value for money from their defence and security programmes."

Trickeling up they need a war somewhere

Defence research group QinetiQ axes 325 jobs as MoD cuts bite

Recent $2Bn NASA contract win encouraging

QQ. Qnietiq

Lovely breakout on the chart. looks
like another leg up. Fundys pretty
solid aswel, on a multiple of just
over 10 to 2013. very cheap.



QinetiQ Group PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Broker Name Withheld 3
07-02-12 BUY 131.02 16.87 2.70 114.72 14.04 2.78
Execution Noble
09-01-12 BUY 109.00 16.21 4.00 100.00 15.09 4.00
Edison Investment Research
06-01-12 None 108.40 13.30 2.50 112.50 13.80 3.00
Investec Securities
07-12-11 HOLD 136.95 16.75 2.70 108.82 13.29 3.50
Evolution Securities Ltd
30-09-11 RED 107.00 12.90 2.60 114.00 13.80 2.90

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 121.99 15.98 3.03 109.10 14.12 3.31
1 Month Change 2.98 0.43 -0.08 0.84 0.02 -0.09
3 Month Change 17.09 2.69 0.24 0.32 0.54 0.19


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS -36.32% 124.24% -11.60%
DPS % % 8.96%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £167.70m £196.71m £181.74m
EBIT £96.30m £141.46m £127.92m
Dividend Yield % 2.13% 2.32%
Dividend Cover x 5.27x 4.27x
PER 19.99x 8.91x 10.08x
PEG -0.55f 0.07f -0.87f
Net Asset Value PS -25.27p p p

Hemscott premium.

Yes tipped by Investors Inteligence today

QinetiQ (QQ/) - broke the 140p range resistance last week. This signalled that the uptrend is about to reassert, especially as this resistance is the major base ceiling (see right). We buy.



Portfolio Update

We open a long in QinetiQ (see above).

IN SUNDAYS FINANCIAL MAIL...today.

QinetiQ starts tests on new Boeing 737
By Tom Mcghie

Last updated at 5:15 PM on 19th February 2012

Britain's top secret QinetiQ defence company will this week start critical tests on the new Boeing 737 at its world-leading wind tunnel in Hampshire.

The success of the multi-billion pound Boeing 737 ‘Max’ project depends on the outcome of four months of tests on its efficiency at take-off and landing speeds.High-speed tests will be done in Seattle.

The aircraft, which is due to come into service in 2017, is expected to be 12 per cent more efficient than the present 737. A new engine and wings with shark-like fins are set to make it significantly more economical to run than its rivals.

In 2004, Boeing agreed a ten-year deal to use QinetiQ’s wind tunnels at Farnborough.

Scientists there have built a global reputation, having successfully tested Boeing’s 777 series and the Dreamliner.

QinetiQ shares neared a 12-month high on Friday, closing at 148p.


http://www.thisismoney.co.uk/money/markets/article-2103384/QinetiQ-starts-tests-new-Boeing-737.html

Mentionned in the National Press
yesterday, please see post above.

IG Index


Client Sentiment

LONG 95% of IG clients with open positions in this market expect the price to rise
5% of IG clients with open positions in this market expect the price to fall

goldy you may well find most IG customers are optimists and are always long

Just using it as a proxy as IG is the biggest of them all.

Changes every 15 minutes anyway and shows on a daily basis how sentiment changes.

We should have a pre-close trading update from aerospace and defence technology specialist QinetiQ on Monday, ahead of interim results due in November And I think engineering and defence companies are well worth a look these days, having suffered during the economic downturn.

Earnings per share figures have slumped over the past three years, and the dividend was stopped in 2011. But forecasts for the year to March 2013 suggest a return to pre-crash levels, with round 15p per share being forecast -- today's price of 174p turns that into a price-to-earnings (P/E) ratio of under 12. The recovery in the dividend is expected to continue this year and next, too, though there's only around 2% on the cards as yet.

Still, it's a recovering industry, and it seems like a good time for investors to give it some scrutiny.

QinetiQ going great guns despite foggy outlook
Mon 24 Sep 2012

QQ. - QinetiQ Group

Latest Prices
Name Price %
QinetiQ Group 180.30p +4.95%

FTSE 250 11,872 -0.66%
FTSE 350 3,104 -0.56%
FTSE All-Share 3,038 -0.56%
techMARK 2,131 -0.35%
techMARK 100 2,420 -0.54%
Aerospace and Defence 3,879 -1.10%

LONDON (SHARECAST) - Defence firm QinetiQ Group's trading has been going great guns, with first half performance stronger than originally expected.

The first half of the group's financial year saw it deliver the majority of two key orders for the Q-Net vehicle survivability product earlier than originally planned. This, together with a higher level of spares sales, more than compensated for lower sales in other major products, the company revealed.

The group is enjoying slightly different fortunes on either side of the Atlantic Ocean. The UK service side has continued to perform well, benefiting from a reduction in the cost base and better project execution, as well as a boost in short-term orders.

In the US, where the federal spending picture is cloudy, to say the least, the group has been doing less well. A large number of submitted bids remain unresolved, and some of these are unlikely to be decided until the issue of sequestration - the raising of the budget debt ceiling - is addressed.

The board touched on the issue of political uncertainty in its outlook statement, saying that - along with the dodgy economic outlook in the UK and US - forward visibility for the next six months is much lower than usual, particularly in the US.

"However, the strong performance in the first half gives the board confidence that the group should at least meet its expectations for the current year, absent any material change in customer requirements," QinetiQ said.

A trading update from defence and aerospace engineer QinetiQ pushed its shares up 10.1p (5.9%). "The Group's performance during the first half of the financial year has been stronger than originally expected", we were told, and the board expects to at least meet its previous guidance for the full year.

Forecasts put the shares on a price-to-earnings (P/E) ratio of 11 for the full year, with a dividend of around 2% expected, so a lot of the expected recovery looks to be already in the price.

Defence firm QinetiQ Group (Other OTC: QNTQF.PK - news) 's trading has been going great guns, with first half performance stronger than originally expected, prompting shares to jump. The first half of the group's financial year saw it deliver the majority of two key orders for the Q-Net (Frankfurt: A0Z22E - news) vehicle survivability product earlier than originally planned. This, together with a higher level of spares sales, more than compensated for lower sales in other major products, the company revealed.

Banked some profit

Well done DC, That's quite a chart isn't it?

Thanks Stan, why are they all not like this. :-))

Indeed.

Sold my holding :-))

have had this one from the start showing profit at last and starting to look ok QinetiQ said the UK Ministry of Defence will pay £998 million for the third five-year term of their long-term partnering agreement (LTPA).

Qinetiq has completed 10 years of the 25-year LTPA, and the just-agreed price for the third five-year term will see it continue to provide test, evaluation and training support services to the MoD.

"As a result of cost savings and some minor changes in scope, MOD will pay £998 million across the third five-year term of this contract," Qinetiq said.

Half-yearly report

QinetiQ, the defence, security and aerospace company, announces its interim results for the half year ended 30 September which saw:

• Encouraging increase in order intake in EMEA Services with growing international customer base
• US Services stabilising post restructuring but visibility remains limited
• Decrease in US conflict-related product sales and profits against record first half of last year
• Balance sheet strength achieved by on-going high cash conversion
• Increase in interim dividend reflecting re-basing of last year's final dividend and confidence in strategy

Interim Management Statement

http://www.telegraph.co.uk/finance/newsbysector/industry/defence/12005247/New-security-threats-give-defence-group-QinetiQ-a-boost.html

Having a great week, watching. Reluctant to go long at these levels. Never traded this one before. See what happens when it pulls back a bit.

bought at float still hold, its been a long time, 300p on next results , decide then
in the meantime a takeover, ? BB

On watch list for Monday, since July 2015 has bounced on solid support line 220p(ish). Looking for a trade long on the spreads, initial target 260p with tight stop. Interim result next Thursday 16th.


LATEST BROKER VIEWS

Date Broker New target Recomm.
2 Oct JP Morgan... 290.00 Overweight
29 Sep Liberum Capital 270.00 Hold
25 Sep Barclays... 285.00 Overweight
17 Aug Barclays... 285.00 Overweight
24 Jul JP Morgan... 290.00 Neutral
20 Jul Goldman Sachs 253.00 Sell
20 Jul JP Morgan... 290.00 Neutral
19 Jul Liberum Capital 270.00 Hold
5 Jul JP Morgan... 295.00 Neutral
31 May Goldman Sachs 255.00 Sell

Liberum Capital today reaffirms its hold investment rating on QinetiQ Group PLC (LON:QQ.) and raised its price target to 270p (from 230p).

Berenberg today downgrades its investment rating on QinetiQ Group PLC (LON:QQ.) to hold (from buy).

StockMarketWire.com
Defence technology company QinetiQ Group said it was making no changes to its expectations for the full year after underlying trading in the first quarter progressed as planned.

The company said its Europe, Middle East and North Africa services division grew both revenue and orders organically against the same period last year.

The global products division, which has shorter order cycles than EMEA services, had also continued to grow orders and revenues organically during the period, it added.