QinetiQ ups FY guidance by 20%

23rd Nov 2011 07:55

Shares of defence markets researcher and technology firm QinetiQ raced ahead after it reported a return to net profit for the half year and said expectations for the current year have increased by around 20%.The group posted a net profit of £66.6m for the six months to 30 September compared to a net loss of £42.1m the same time a year earlier. Revenue fell to £739.6m from £864.9m.The drop in revenue reflects the continuing delays of service contracts in US and UK defence markets.Chief executive officer Leo Quinn said, "Rapid execution of our self-help plan is building a stronger QinetiQ. The group is better focused on delivering its customers' changing needs, and this is starting to come through in its underlying performance."QinetiQ believes that if customer requirements remain unchanged, it will exceed its original expectations for the current year by approximately 20%."Our confidence in QinetiQ's ability to build significant value over the medium term is demonstrated by the payment of the interim dividend of 0.9p," Quinn said.Operating costs fell by 26% to £629.3m as it aims to simplify the structure of its business divisions. --cj