QinetiQ profits slip, orders delayed

25th Nov 2009 07:04

Defence technology group QinetiQ posted a slight fall in profits in the six months to September 30 and said some orders were being delayed in the UK and US amid uncertainty over government spending.Pre-tax profits fell to £45.1m from £45.9m over the same period the previous year as revenues climbed to £806.3m from £727.4m. Earnings per share rose to 5.7p from 5.6p and the dividend was lifted to 1.58p from 1.5p.Orders decreased to £675.9m from £777.9m, QinetiQ, which makes unmanned air systems and training and simulation programmes for soldiers, said.North American revenues rose by 24% to £403.7m, but growth was held back by a slowdown in military product sales, the company said.Europe, Middle East and Africa revenues rose to £400.6m from £397.3m, with the UK operations seeing growth despite budget pressures and delays in contract awards.'The board continues to believe that QinetiQ is well positioned to take advantage of the longer term trends in the defence and security markets,' the firm said. 'However currently both its main geographic markets are experiencing short term uncertainties in specific areas. In the UK, political and economic factors are delaying the letting of contracts; in the US, the finalisation of policy for Afghanistan continues to impact government decision-making.'