Qinetiq to exceed FY forecasts

3rd Feb 2011 07:10

Military researcher QinetiQ expects to 'exceed its previous expectations' for the current year but issued a cautionary statement on future trading.The high-tech weapons group warned that its view of future periods is unchanged as its principal markets 'remain subject to considerable uncertainty'."QinetiQ's principal markets have remained challenging with defence budgets on both sides of the Atlantic under pressure in light of government programmes to reduce fiscal deficits," the formerly state-owned defence technology firm said in a statement.US Services revenues continue to run below last year, the group explained, due to delays in the letting of new contracts, the termination of some procurements and the impact of in-sourcing by the US Government in 2010. The group's five-year deal to provide engineering services to the Kennedy Space Centre in Florida, which starts 1 March 2011, is expected to provide 'relatively stable long-term revenue and good cash profile.'In the UK delays and shorter duration awards are also being experienced, as the customer base works through the conclusions of the Strategic Defence and Security Review. "The business is continuing to make progress on managing its costs to enhance competitiveness," it said.