QinetiQ Group PLC (LSE:QQ.) has forecast financial year 2023 results will be ahead of its previous guidance and towards the upper end of market consensus.
The news sent shares 4.4% higher in early trading.
The defence group said it had delivered a strong operational performance during the fourth quarter to 31 March 2023 which saw it finish the year with full-year order intake up by 40% at a record-high of more than £1.7bn.
The firm expects to deliver high-teens percentage total revenue growth at stable margins, with underlying operating profit of at least £175mln, including the benefit of the Avantus and Air Affairs acquisitions.
In addition to the robust orders, revenue and profit performance, cash flow management continues to remain consistently strong, the company added.
QinetiQ highlighted a good performance from Global Products, in particular the US business has delivered well, with high order intake of US$280mln and impressive revenue growth of 25%, prior to the benefit of Avantus.
The integration of Avantus is progressing ahead of plan, the company added.