LONDON (dpa-AFX) - QinetiQ Group plc (QQ.L), on Thursday, issued trading update covering its second quarter to 30 September 2021, and said its half year performance is in line with market consensus expectations, subject to audit.
The company noted that it has delivered strong underlying operating performance at Group level with excellent order intake at £700 million, 25% higher than the first half of FY21.
For the full year, QinetiQ expects to deliver mid-single digit organic revenue growth at about 5% and underlying operating profit margin at the lower end of its 11%-12% expected range. This expectation includes short-term effects of the customer's mission shifting from Afghanistan and COVID related delivery and supply chain challenges in the US.
Further, the company stated that its operating cash flow has been good and it retains a strong balance sheet with net cash at 30 September 2021 of about £140 million.
Looking ahead, the company maintains its medium to long-term guidance, and continues to target mid-single digit percentage compound annual organic revenue growth over the next 5 years, with strategic acquisitions further enhancing this growth.
Similarly, QinetiQ continues to expect operating profit margin of 12%-13%, although in the short-term it continues to anticipate margins being about 100bps lower, driven by increased investment on its digital transformation programme and by the evolution of business mix. Capital expenditure is still expected to be in the range of £90 million - £120 million per annum for the next two years.
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