QinetiQ Group PLC (LSE:QQ.) cited robust trading in the second quarter as the defence contractors said it was on course to meet full-year expectations.
It reported significant organic revenue growth and an improvement in its operating profit margin in the opening six months of the financial year versus the comparable period 12 months ago.
A record first-half order intake of approximately £950 million has increased the order backlog, maintaining revenue under contract for the full year at 90%. Despite a short-term dip in cash conversion, the company assured it will align with prior guidance by year-end.
In early trade, the stock was marking time at 328.6p. "We would use the recent weakness to buy the shares," said Shore Capital in a short research note on QinetiQ.