# QinetiQ Group delivers profitable growth and progress

- Link: https://www.directorstalkinterviews.com/qinetiq-group-delivers-profitable-growth-and-progress/412798049
- Published: 2019-11-14T07:35:33+00:00
- Author: Giles Arbor

**QinetiQ Group** (LON: QQ.) have issued results for six months to the 30th September
2019.

|  | Statutory results |  | Underlying* results |  | 
|  | H1 2020 | H1 2019^ |   H1 2020 |   H1 2019^ | 
| Revenue | £486.5m | £420.3m | £486.5m | £420.3m | 
| Operating profit | £68.5m | £47.8m | £59.7m | £51.6m | 
| Profit after tax | £62.2m | £50.1m | £52.0m | £45.8m | 
| Earnings per share | 11.0p | 8.9p | 9.2p | 8.1p | 
| Interim dividend per share | 2.2p | 2.1p | 2.2p | 2.1p | 
|  |  |  |  |  | 
| Total funded order backlog |  |  | £3,083.6m | £1,882.1m | 
| Total orders in the period^(1) |  |  | £410.8m | £298.1m | 
|  |  |  |  |  | 
| Net cash flow from operations | £77.0m | £54.9m | £77.0m | £54.9m | 
| Net cash | £173.5m | £220.8m | £173.5m | £220.8m |

*Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the
glossary.

^ Restated due to the retrospective adoption of new accounting standard, IFRS 16,
in respect of finance leases. Refer to Note 1.

1 H1 2020 excludes LTPA contract amendment signed 5 April 2019.

**Delivered strong operational and financial performance**

 * 38% increase in orders, 30% on an organic basis, driven by growth across the 
   Group
 * 16% revenue growth, 10% on an organic basis, driven by good performance in both
   divisions
 * Underlying operating profit up 16% including £1.6m non-recurring trading items(
   H1 2019: nil), excluding them up 8% on an organic basis
 * Strong cash performance with 129% underlying cash conversion pre-capex
 * Underlying EPS up 14%; 2.2p interim dividend – one third of FY19 full year dividend

**Continued focus on strategy implementation**

 * On-track with delivery of new LTPA contract for UK Ministry of Defence (MOD)
 * Grown international revenue to £150.8m (H1 2019: £129.7m) – 31% of total revenue
 * Won £67m secure navigation programme for UK MOD
 * Good acquisition performance, including 50% growth in QinetiQ Target Systems 
   revenue
 * Announced acquisition of MTEQ; US presence to increase to c25% of Group revenue

**Priorities and expectations for the remainder of the year**

 * Operational performance; 96% of forecast FY20 revenue under contract (H1 2019:
   90%)
 * Win further competitions and pursue campaigns globally
 * Drive sustainable profitable growth through continued investment
 * Maintaining expectations for Group operating profit in FY20

> **Steve Wadey, QinetiQ Group plc Chief Executive Officer said:**
> “Our strategy to drive value for our customers and shareholders continues to gather
> momentum. We delivered a strong first half result, with organic growth in orders,
> revenue and profit driven by a good performance across our businesses, both in
> the UK and internationally. We are maintaining expectations for full year operating
> profit with high single digit revenue growth.
> “Our focus for the remainder of the year is to win further campaigns globally,
> successfully deliver key programmes, and complete the acquisition of MTEQ to transform
> the scale of our US operations as we build an integrated, global defence and security
> company.”

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