We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I too bought a few weeks ago in anticipation of an increase in defence spending.....much written about in the media and long overdue..this company at the forefront of future growth
With you there boy.
I topped up my holdings a few days ago.
U.K. government announcing defence spending to go from 2% to 2.5% ,so a 25% increase . Other governments will follow. Huge benefits for this company,which is at the leading edge of modern warfare. Deserves a big rerate now. I think investors would be very wise to invest at these levels,as I feel sure of big rises to come.
Yes if they are spending “x” amount on buy backs they will get more shares to then remove from the market so in theory the price should go up.
At least the continued share buy back will be more cost effective at these levels! I assume that’s the case accountancy wise?
I think we were expecting to beat expectations and the markets obviously picked up on the slower growth on the Global solutions. At least it recovered slightly from today’s low point. Fingers crossed we start to build over the coming weeks
Results didn't appear that disastrous
Either way it’s been a pretty disastrous results day! Compared to other defence sector stocks this has done nothing of late. The market clearly didn’t like the results release
I wonder what is behind the joint decision for CFO to leave
DragonFire getting more publicity
https://www.bbc.co.uk/news/uk-68795603
From Wiki - DragonFire is a British laser directed-energy weapon (LDEW) technology demonstrator. It was first unveiled to the public in 2017 at the Defence and Security Equipment International (DSEI) conference in London and is being developed by UK DragonFire, a collaboration consisting of MBDA UK, Leonardo UK, QinetiQ and the Defence Science and Technology Laboratory (Dstl).
Will BAE buy them out? Might as well...
Im relatively new to all this. Is Blackrock increasing investment a good sign? https://www.lse.co.uk/rns/QQ./holdings-in-company-o0th5p46ua9kg1i.html
I'm assuming thats what happened based on the RNS
To urge the Prime Minister to increase defence spending to 2.5%. It’s inevitable that defence expenditure will increase.
The British Ministry of Defence (MoD) and the Defence Science and Technology Laboratory (Dstl) have successfully test-fired the nation's first high-power laser weapon, marking a significant milestone in the realm of defense capabilities. Mounted on the robust Wolfhound 6x6 armored vehicle, this cutting-edge weapon system targeted aerial threats in a demonstration of precision and power.
https://armyrecognition.com/defense_news_february_2024_global_security_army_industry/breaking_news_uk_successfully_tests_dragonfire_laser_weapon_mounted_on_wolfhound_armored_vehicle.html?utm_content=cmp-true
Qinetiq and team leading the way: “This is a really innovative application of science and engineering and is the fruit of sustained investment and effort. DragonFire uses cutting-edge science and technology and delivers much greater performance than other systems of a similar class. DragonFire provides a step-change in our ability to deal with high-performance and low-cost threats.”
https://ukdefencejournal.org.uk/mod-outlines-future-steps-for-dragonfire-laser-weapon/
QQ is one of those rare finds, a genuinely good buy. Their advanced weaponry systems will ultimately become the new norm as the battlefield has evolved dramatically over the past 5 years. £2m missiles to take out £20k drones is not sustainable.
https://www.thetimes.co.uk/article/1ffc78b4-0902-43d0-8d94-dacdba833944?shareToken=54868be52fd7e3789c26a5026c3e2291
MoD’s £10-a-shot laser beam which will ‘revolutionise warfare’ fired for first time (From The Telegraph)
See: https://www.telegraph.co.uk/news/2024/01/19/dragonfire-laser-beam-fired-for-first-time-defence-ministry/
(18 January) "JPMorgan raises Qinetiq price target to 455 (from 440) pence - now rated 'overweight'."
(Sharecast News: 16 January 2024) - In an update for the third quarter, the defence and security firm said it delivered a good operational performance, with continued organic revenue growth and operating profit margin in line with its expectations. The order intake remained strong, it said, with year-to-date orders at around £1.35bn and revenue under contract for the full year improving to 95%, higher than this time last year.
Qinetiq said cash generation was very strong, as expected, with cash conversion "significantly above" 100% in the quarter. "We are now back in-line with our normal cash profile and on-track to deliver 90%+ cash conversion for the full year, as previously guided," it said. "Overall, the group is making good progress and we remain on-track to deliver in line with expectations for FY24."
Analyst expectations for the full year are for revenue of £1.87bn and operating profit of £210m.
Chief executive Steve Wadey said: "Our excellent order intake demonstrates the continuing demand for our high-value, cutting-edge services and products. Our operational performance in the third quarter underlines our confidence in delivering another year of good organic growth at stable margins with strong cash conversion. "Given the group's high cash generation and confidence in the long-term outlook, we are pleased to announce the launch of a £100m share buyback programme to increase returns to shareholders, whilst maintaining the ability to deliver our long-term growth strategy."
Well that didnt work as planned, as my link was removed for some reason!
Basically there was an article regarding a potential £500m aquisition or buyback (Citi).
I'll attempt to post the link again and se what happens....
[LINK REMOVED]
Hi there, long time lurker here.....There doesnt seem to be much news regarding Qinetiq, but I stumbled across this from a few days ago.... would this be good news for the S.P?
[LINK REMOVED]
(Alliance News - 11 Dec 23) "Back in London, Qinetiq was the best FTSE 250-listed performer, up 3.5%. JPMorgan lifted the defence technology to 'overweight' from 'neutral'."
I'm puzzled too. I have been wondering about that rather negative piece in the Investors' Chronicle two weeks age responding to the company update:
Quote "However, as the 8 per cent post-results slide in its share price indicates, not everything went as well as it might. Operating profit on a statutory basis was 28 per cent lower, mainly due to the swing in value of a foreign exchange derivatives contract taken out last year to hedge against currency fluctuations while the Avantus deal was being ironed out. A year ago, Qinetiq recorded a gain of £42.9mn on the contract but this time it booked a £20.7mn loss.
"Of greater concern, though, was that revenue from the US was “slower than expected”, making up just 22 per cent of the total, compared with 15 per cent last year prior to the Avantus deal. It blamed this on the ongoing federal budget dispute and some awards being held up by competitors challenging the bidding process. A consortium in which it played a part also lost out on a contract to build optionally-manned fighting vehicles for the US Army. Despite this, the company argued that a “significant step-up in contract awards” would lead to stronger second half US growth.
"Cash generation was also disappointing, with Qinetiq’s underlying cash conversion ratio dropping to just 50 per cent, compared with 106 per cent over the course of last year. The company attributed this to “short-term timing effects” and said it should still meet its full-year target of 90 per cent.
"The key consideration for investors is whether these are short-term blips. On the cash issue, it shouldn’t take too long to find out and if the company is true to its word, the shares should re-rate. Broker Shore Capital envisages a 30 per cent upside to the shares based on an analysis of its returns and its growth potential. Given a price-to-earnings ratio of 12 – below both its peers and its five-year average – we also think they represent good value. Buy." Unquote.
Any other ideas?
I’m struggling to find a justification of a 8% fall in last 5 days. Have I missed any recent RNS
Nice one Q!