Last checked at 24 Mar 2016 07:00
24 March 2016
QinetiQ Group plc
Pre Close Statement
Prior to entering a closed period for the year ending 31 March 2016, QinetiQ today confirms that the company remains on course to deliver on its expectations for the current financial year as outlined at its interim results in November 2015 and in its Q3 trading update dated 10 February 2016.
EMEA Services has continued to perform as set out in the Q3 trading update. On 3 March 2016, QinetiQ Australia announced that it had been awarded a five-year follow-on contract, with rolling extensions for up to 15 years, to provide aircraft structural integrity services for the Australian Defence Force's Directorate General Technical Airworthiness. Trading in Global Products has been as expected in the period with the US products business winning small robot and survivability orders for both US and overseas customers.
On 14 March 2016, the UK Secretary of State for Defence announced that next year's baseline profit rate for single source defence contracts will be 8.95% (compared with 10.6% this year.) The new rate will apply to new or renewed qualifying contracts signed from 1 April 2016 to 31 March 2017 and acts as the starting point for agreeing the profit rate for individual contracts. The Secretary of State also announced that he has asked the Single Source Regulations Office (SSRO) further to develop the methodology used to calculate the baseline profit rate over the next year that will be used as the basis of the calculation in future years.
QinetiQ will announce preliminary results for the financial year ending 31 March 2016 on 26 May 2016.
ENDS
Notes to Editors:
A FTSE250 company, QinetiQ uses its world class knowledge, research and innovation to provide high-end technical expertise and advice, to customers in the global aerospace, defence and security markets. QinetiQ's unique position enables it to be a trusted partner to government organisations, predominantly in the UK and the US, including defence departments as well as other international customers in targeted sectors. For more information see www.QinetiQ.com. Download the QinetiQ investor relations app for iPad and iPhone from the App Store. Follow us on twitter @QinetiQ.
For further information please contact:
Investor relations: | David Bishop, QinetiQ | +44 (0) 7920 108675 |
Media relations: | QinetiQ press office | +44 (0) 1252 393500 |
| Chris Barrie, Citigate Dewe Rogerson | +44 (0) 7968 727289 |