QinetiQ Group plc Third Quarter Trading Update (5803O)
February 10 2016 - 2:00AM
UK Regulatory
TIDMQQ.
RNS Number : 5803O
QinetiQ Group plc
10 February 2016
10 February 2016
QinetiQ Group plc
Third Quarter Trading Update
QinetiQ Group plc ('QinetiQ') today issues a third quarter
trading update and reaffirms previous guidance for Group
performance in the full year to 31 March 2016.
Trading Environment
The UK defence market remains uncertain. While the Government's
Strategic Defence and Security Review was published in December
2015, it is likely to take some time before its impact is clear.
Additionally, the Single Source Regulations Office (SSRO) is not
expecting to publish the single source profit rate for the next
financial year until March 2016.
EMEA Services
The performance of EMEA Services was in line with expectations
in the period and revenue under contract for this financial year is
as anticipated at this stage, but the division has continued to
experience some de-scoping and delay to orders. During the period,
EMEA Services won a contract with Motorola Solutions to provide
monitoring, assessment and assurance services in support of the
delivery of the UK Emergency Services Network. As announced in
November 2015, it also secured a GBP153m five-year renewal from the
UK Ministry of Defence (MOD) for aircraft engineering support.
In December, QinetiQ sold Cyveillance Inc. to Looking Glass
Cyber Solutions Inc. for net disposal proceeds of GBP22m.
Cyveillance is a former business unit of the US Services division,
sold in May 2014, and more recently has been reported in EMEA
Services. In the full year to 31 March 2015, it had revenues of
$18m.
Global Products
Trading in Global Products was as expected during the period,
and revenue under contract for this financial year is as
anticipated at this stage, but its performance remains dependent on
the timing and shipment of key orders in what is a shorter order
cycle business.
Among the division's new orders in the period, the OptaSense
business was awarded a contract to protect approximately 2,000km of
pipeline which, once installed, will be the world's largest
distributed fibre sensing project. The total value of the project
is more than $30m of which approximately half has been contracted
with OptaSense.
Outlook
Overall, the Board's expectations for Group performance in the
current financial year remain unchanged from those set out in
QinetiQ's interim results announcement dated 19 November 2015.
ENDS
Notes to Editors:
QinetiQ will announce its preliminary annual results on 26 May
2016.
Download the QinetiQ investor relations app for iPad and iPhone
from the App Store.
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
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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