QinetiQ records half-yearly profits (From Malvern Gazette)

QinetiQ records half-yearly profits

11:20am Thursday 26th November 2009

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HI-TECH firm QinetiQ has announced increased revenue in the first half of this financial year compared to the same period 12 months earlier.

The defence specialist hit the headlines in September when, at the end of a three-month consultation, it announced 100 job losses would be made at its Malvern site due to a downturn in its UK-based business.

Although many of these were accounted for by voluntary redundancies, the announcement left at least 50 scientists and technicians facing the prospect of losing their jobs.

Figures published this week show that QinetiQ Group’s first half revenue has grown from £727.4m last year to £806.3m for the first half of the 2009/10 financial year.

Operating profit margin has improved from 7.4 per cent to 7.8 per cent and the dividend per share has risen by 5 per cent to 1.58p.

However QinetiQ’s first half pre-tax profit has fallen by two per cent, attributed to uncertainties in government spending plans. Bosses have also warned that the firm is unlikely to meet its previous expectations in the short-term.

Spokesman David Bishop said: “The board continues to believe that QinetiQ is well positioned to take advantage of the longer term trends in the defence and security markets.

“However currently both its main geographic markets are experiencing short-term uncertainties in specific areas. In the UK, political and economic factors are delaying the letting of contracts; in the US, the finalisation of policy for Afghanistan continues to impact Government decision making.”

The company historically enjoys a stronger second half, but is advising that it currently has more limited visibility on the amount and timing of orders.

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