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Qinetiq Group plc

QinetiQ Group plc Excellent year with strong operational performance

QinetiQ Group plc (LON:QQ), today announced results for the year ended 31 March 2019.

 Statutory resultsUnderlying* results
Operating profit£113.8m£141.0m£123.9m£122.5m
Profit after tax£113.9m£138.1m£111.5m£109.0m
Earnings per share20.1p24.4p19.7p19.3p
Full year dividend per share6.6p6.3p6.6p6.3p
Total funded order backlog1  £3,133.6m£2,005.4m
Total orders in the period2   £776.4m £587.2m
Net cash inflow from operations£125.6m£132.4m£126.3m£126.5m
Net cash  £188.5m£266.8m
  • Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary.

1 2019 includes LTPA amendment signed 5 April 2019

2 Includes share of Joint Ventures, excludes LTPA contract amendments

Delivered third year of organic growth

  • Orders up 32%, record £3.1bn high-quality backlog1
  • Revenue up 9%, 8% on an organic basis
  • Underlying operating profit up 1% including ~£7m non-recurring trading items (2018: ~£9m), excluding them up 3% on an organic basis, offsetting UK single source profit headwind
  • 102% underlying cash conversion pre-capex
  • Underlying EPS up 2%; 5% increase in full year dividend

Driving growth through disciplined execution of strategy

  • Secured £1.3bn amendment to Long Term Partnering Agreement (LTPA) with UK MOD
  • Won five competitive long-term programmes: UK, US & Canada
  • Completed one acquisition and one strategic investment to grow training offering
  • Grown international revenue from 21% to 30% in three years
  • Engaged employees in driving and sharing benefits of growth

Priorities for FY20

  • Operational performance; 74% revenue under contract (2018: 69%)
  • Deliver first year of amended LTPA contract and develop growth opportunities
  • Win further competitions and accelerate growth by pursuing campaigns globally

Drive sustainable profitable growth through continued investment

  • Maintaining expectations for Group performance in FY20

Steve Wadey, Group Chief Executive Officer said:

“This has been an excellent year with strong operational performance. By improving our customer focus and competitiveness, we have delivered a third successive year of revenue growth, increased our international revenue share from 21% to 30% over the last three years, offset the UK single source profit headwind and delivered organic profit growth.

“Securing the LTPA amendment and winning five major competitive, long-term programmes demonstrates that our strategy is working, providing a platform for sustainable profitable growth.”

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