Qinetiq hit by defence spending reviews

28th Sep 2010 07:31

Uncertainty over defence spending plans in both the UK and US has reduced visibility and meant delays in orders, according to high-tech weapons group QinetiQ."Principal markets have remained uncertain, due both to the UK government's ongoing Strategic Defence and Security Review and the drive by the US Secretary of Defense to reduce non-operational costs. Decisions on orders continue to be delayed across the sector and visibility remains limited, particularly in the UK," it said. Conditions in the UK are especially tough it says, with revenues running below last year. Qinetiq has already announced 700 job cuts in the UK. This will cost it a one-off hit of approximately £40m. US revenues are running at a similar level to the second half of last year, following the impact of government insourcing. "As yet the outcome of governments' policy reviews is difficult to predict. Absent any resulting changes in customer requirements, overall the board believes that the group will meet its expectations for the current year," the firm said.