(Alliance News) - QinetiQ Group PLC on Thursday raised its financial outlook after delivering "strong" annual results in the face of "difficult market conditions in the US."
Shares in the Farnborough, Hampshire-based company soared 14% to 425.82 pence each. It was the best performing stock in the FTSE 250 which was little changed.
Chief Executive Steve Wadey said: "We enter this year with strong momentum and increasing spending in our major markets, which gives us confidence to increase our guidance for [financial 2025] and underpins our [financial 2027] outlook of GBP2.4 billion organic revenue at [around] 12% margin. With a strengthened balance sheet and enhanced focus on disciplined capital allocation, we are well positioned and have a clear strategy with optionality for additional investment in sustainable growth and further shareholder returns."
For the year ending March, QinetiQ said pretax profit fell 4.8% to GBP182.7 million from GBP192.0 million a year prior. Revenue, however, rose 21% to GBP1.91 billion from GBP1.58 billion.
The dividend was increased by 7.1% to 8.25 pence from 7.70 pence a year ago.
Qinetiq said EMEA Services delivered excellent revenue growth at stable margin, driven by strong execution of prior year orders and consistent operational delivery on long-term contracts.
But Global Solutions continued to be impacted by difficult market conditions in the US resulting in lower revenue at stable margin.
Qinetiq highlighted a record order intake of GBP1. 74 billion and an order backlog of GBP2.9 billion.
For financial 2025, Qinetiq expects to deliver high single-digit organic revenue growth, compared to financial 2024, at a stable operating profit margin.
The firm said it is "on-track" to achieve around GBP2.4 billion organic revenue at around 12% margin by financial 2027. This will deliver an attractive return on capital employed at or above the upper end of the 15% to 20% plus range, it added.
By Jeremy Cutler, Alliance News reporter
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