QinetiQ Group plc Third Quarter Trading Update (4622L)
January 13 2021 - 1:00AM
UK Regulatory
TIDMQQ.
RNS Number : 4622L
QinetiQ Group plc
13 January 2021
News release
QinetiQ Group plc
Third Quarter Trading Update
13 January 2021 - QinetiQ Group plc ("QinetiQ" or "the Group")
today issues a trading update covering its third quarter of
trading.
Good momentum, maintaining expectations
Building on a strong first half to the financial year, the Group
has continued to deliver well with continued strong performance
through the third quarter. While we remain cautious and alert to
the changing COVID-19 environment, we are on-track for our fifth
consecutive year of organic growth and we continue to maintain our
expectations for the full year, as outlined at our interim results
in November 2020.
Our company has remained resilient and performance has continued
to be strong, against the backdrop of the evolving COVID-19
pandemic. We adopted a three phase approach to working through the
pandemic and our "renewal phase", the last of the three phases, is
progressing well with a renewed ambition and evolved strategy to
accelerate sustainable growth. We continue to adapt to our "new
normal" ways of working with distributed teams delivering
effectively and efficiently for our customers.
EMEA Services
EMEA Services has continued to have good momentum in the third
quarter with very limited impact from COVID-19, as the division
benefits from long-term contracts and delivers work that is
critical to sovereign defence capabilities. We expect good organic
revenue growth in EMEA Services for the year.
Global Products
Global Products has continued to show top line growth in the
third quarter, driven by the contribution of our advanced sensing
solutions business (formerly known as MTEQ), following disruption
due to COVID-19 in the first half. Our Targets business is showing
positive signs of recovery in the second half with some key orders
being won.
Strategy Update
At our interim results in November 2020 we set out a renewed
ambition and evolved strategy to accelerate sustainable growth of
the company by delivering mission-led innovation for our customers'
advantage. This renewed strategy is already yielding significant
benefits:
- Delivering on the LTPA: We are continuing to execute the modernisation
programme, delivering successfully against all contractual KPIs
and exceeding customer expectations; we remain on-track to deliver
the final transition milestone on or ahead of schedule. In the
quarter we hosted the UK and US Navy at our Hebrides ranges and
we also completed the first training activities with the US Air
Forces in Europe (USAFE) following our recent five year $27m contract
win.
- Delivery of RCV-L prototypes: In partnership with Pratt Miller
Defense, we delivered the four prototype vehicles required to the
US DoD ahead of schedule, under the Robotic Combat Vehicle Light
programme, in advance of testing and experimentation in 2021.
- GBP127m Typhoon EDP contract: We have won a five year contract
through the Engineering Delivery Partner (EDP) framework providing
a range of engineering services for Typhoon, from planning and
acceptance through to regulatory assurance, trials support and
optimisation of in-service capability. The contract is a significant
milestone bringing total orders through EDP since its inception
to in excess of GBP500m, as reported at our interim results.
- Disposal of OptaSense: In the third quarter we announced completion
of the disposal of OptaSense to Luna Innovations Inc for GBP29m.
This was the third disposal completed this financial year for a
combined enterprise value of GBP69m. These disposals were strategy-led
decisions to optimise our portfolio bringing greater focus on our
core strategy to build an integrated global defence and security
company.
- Acquisition of remaining Inzpire shareholding: In December 2020
we acquired the final 15% share capital of Inzpire Group Limited,
two years after our initial strategic investment. Inzpire is a
leading provider of operational training and mission systems for
military customers in the UK and internationally. The business
has performed well in the last two years, and remains important
to our growing training and mission rehearsal campaign.
About QinetiQ
QinetiQ (QQ.L) is a leading science and engineering company
operating primarily in the defence, security and critical
infrastructure markets. We work in partnership with our customers
to solve real world problems through innovative solutions
delivering operational and competitive advantage. Visit our website
www.QinetiQ.com . Follow us on LinkedIn and Twitter @QinetiQ. Visit
our blog www.QinetiQ-blogs.com .
We will be running a virtual investor seminar on 4 March 2021 at
2pm GMT. Registration will be available on our website shortly.
For further information please contact :
John Haworth, Group Head of Investor Relations: +44 (0) 7920 545841
Chris Barrie, Citigate Dewe Rogerson (Media enquiries): +44 (0) 7968 727289
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