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.
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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?