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(Alliance News) - QinetiQ Group PLC on Thursday reported broadly flat annual profit but received its largest order intake in nearly a decade.
Shares in the defence technology firm were 4.3% higher in London on Thursday mid-morning, one of the best performers in the midcap index.
In the year to March 31, QinetiQ reported pretax profit of GBP123.1 million, flat on the GBP123.2 million reported in financial 2019.
Earnings before interest, tax, depreciation, and amortization was up 11% to GBP184.5 million from GBP165.7 million.
Revenue improved 17% to GBP1.07 billion from GBP911.1 million.
"We delivered a fourth consecutive year of top-line growth. Our strategy is working to successfully become a truly integrated global company. With strong order intake, organic profit growth and net cash on balance sheet, we enter this period of uncertainty in a strong position enabling us to be agile and proactive in addressing both the short-term challenges and pursuing medium to long-term growth," Chief Executive Steve Wadey said.
The firm's total funded order backlog was down slightly to GBP3.10 billion from GBP3.13 billion, but total new orders were sharply higher at GBP2.23 billion from GBP776.4 million, which QinetiQ noted was its largest order intake in 9 years.
Wadey said the company's hit from the corornavirus pandemic has been "limited to date", but QinetiQ nonetheless has taken action to preserve cash.
As part of this, QinetiQ has postponed its final dividend, resulting in its annual dividend being slashed to 2.2 pence from 6.6p the year before.
Looking ahead, Wadey said QinetiQ entered financial 2021 in a "position of strength", and noted it is too early to "draw conclusions" about the Covid-19 fallout.
He added: "At this stage we are planning for a range of outcomes depending upon the duration and extent of national safeguarding measures and any potential budget pressures. We have implemented short-term temporary actions to mitigate the immediate challenges and will provide further updates to the market as we gain more clarity both in terms of near-term trading and longer-term trends."
By Paul McGowan; paulmcgowan@alliancenews.com
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