LONDON (dpa-AFX) - QinetiQ Group plc (QQ.L) said it delivered good underlying performance in the first half period with orders up 25% and revenue up 3% organically. The Group noted that the first half of the year was impacted by two discrete short-term issues: a write-down on a large complex project and weaker performance in the US. The write-down has materially impacted first half results, with underlying operating profit reduced by 14.5 million pounds. Before the write-down, it delivered operating profit margins within short-term target range at 11.2%.
For full year 2022, the Group expects to deliver mid-single digit organic revenue growth at approximately 5% and underlying operating profit margin at the lower end of 11-12% expected range, before the reduction of the write-down.
Also, the Group maintained its medium to long-term guidance. It continues to target mid-single digit percentage compound annual organic revenue growth over the next five years. The Group continues to target operating profit margin of 12-13%, although in the short-term it continues to expect margins being approximately 100bps lower.
For six months to 30 September 2021, underlying operating profit was 53.4 million pounds, down 23% from prior year. Excluding the impact of one off write-down, underlying operating profit was down 2% at 67.9 million pounds. Underlying earnings per share was 8.1 pence compared to 10.0 pence.
Profit after tax declined to 23.8 million pounds from 74.2 million pounds, last year. Earnings per share was 4.2 pence compared to 13.0 pence. Revenue declined to 600.1 million pounds from 603.2 million pounds. Revenue was flat after disposals in the prior year.
An interim dividend of 2.3 pence will be paid on 4 February 2022 to shareholders on the register on 7 January 2022. The full year dividend will be announced with full year preliminary results in May 2022.
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