|
QinetiQ Group PLC on Thursday raised its financial outlook after delivering ‘strong’ annual results in the face of ‘difficult market conditions in the US.’ Shares in the Farnborough, Hampshire-based company soared 14% to 425.82 pence each. It was the best performing stock in the FTSE 250 which was little changed. Chief Executive Steve Wadey said: ‘We enter this year with strong momentum and increasing spending in our major markets, which gives us confidence to increase our guidance for [financial 2025] and underpins our [financial 2027] outlook of £2.4 billion organic revenue at [around] 12% margin. With a strengthened balance sheet and enhanced focus on disciplined capital allocation, we are well positioned and have a clear strategy with optionality for additional investment in sustainable growth and further shareholder returns.’ For the year ending March, QinetiQ said pretax profit fell 4.8% to £182.7 million from £192.0 million a year prior. Revenue, however, rose 21% to £1.91 billion from £1.58 billion. The dividend was increased by 7.1% to 8.25 pence from 7.70 pence a year ago. Qinetiq said EMEA Services delivered excellent revenue growth at stable margin, driven by strong execution of prior year orders and consistent operational delivery on long-term contracts. But Global Solutions continued to be impacted by difficult market conditions in the US resulting in lower revenue at stable margin. Qinetiq highlighted a record order intake of £1. 74 billion and an order backlog of £2.9 billion. For financial 2025, Qinetiq expects to deliver high single-digit organic revenue growth, compared to financial 2024, at a stable operating profit margin. The firm said it is ‘on-track’ to achieve around £2.4 billion organic revenue at around 12% margin by financial 2027. This will deliver an attractive return on capital employed at or above the upper end of the 15% to 20% plus range, it added. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
