Qinetiq showed a stronger-than-expected performance in the first half of the financial year.
The relatively strong performance was helped by the early delivery of two key orders for the Q-Net vehicle survivability product, a Kevlar web that helps protect vehicles from rocket-propelled grenade attacks, the company said. This, together with a higher level of spares sales, more than compensated for lower sales in other major product areas. The latter was partly the result of “considerable uncertainties” in the US marketplace, which is seeing contract delays amid federal government plans to cut the defence budget.
However, UK services continued to perform well, benefiting from a more competitive cost base and better project execution. All of which gave chief executive Leo Quinn confidence that company could meet its forecasts.
“At the heart of Qinetiq is a strong defensible core, built on the deep domain expertise of its people,” Quinn said. “We will continue to invest in this core as the changing needs of our customers provide opportunities for medium-term growth. Our portfolio also contains a number of smaller businesses, some of which could have considerable potential for the future.”