ATK.L Share News (ATK)

LONDON (Alliance News) - QinetiQ Group PLC said on Thursday that it is in repricing discussions with the UK Ministry of Defence for a 25-year long-term partnering deal and hopes to win the MOD's engineering delivery partner programme.

The FTSE-250 listed defence technology company said that it developed an interim pricing arrangement for the year, starting on Sunday, and is confident of concluding the repricing talks within this twelve month timeframe. The contract, originally signed in 2003, is running until 2028 with five-year repricing points, the group said.

After the agreement revision in December 2016, QinetiQ delivered test, evaluation and training support services to 15 considered sites.

QinetiQ also said that its expectations are unchanged for overall performance in the current financial year, as its EMEA Services and Global Products divisions traded in line in the final quarter.

The company said that it continues bidding for a number of new opportunities with the UK government that will enable enhanced capability while also driving cost efficiencies. It is now in talks with the UK Ministry of Defence regarding the engineering delivery partner programme, for which it is now the sole bidder. QinetiQ will deliver this programme in partnership with the engineering companies WS Atkins PLC and BMT Ltd.

The stock was trading 1.7% higher at 203.80 pence per share on Thursday.