QinetiQ Group PLC (LSE:QQ.) has announced a £100 million share buyback on the back of a strong third-quarter performance.
Updating on Tuesday, the defence technology company said a lack of acquisition opportunities coupled with its strong balance sheet meant now was a “compelling time” to return capital to shareholders.
QinetiQ will therefore aim to launch the buyback in February to then be completed over the coming year, though the move is still subject to shareholder approval.
“Our excellent order intake demonstrates the continuing demand for our high-value, cutting-edge services and products,” chief executive Steve Wadey said.
“Our operational performance in the third quarter underlines our confidence in delivering another year of good organic growth at stable margins with strong cash conversion.”
QinetiQ's order intake totalled around £1.35 billion over the first nine months of the year, the company said in a statement, setting it on track to meet expectations.
Some 95% of full-year revenue was under contract come the end of the third quarter, meanwhile, higher than the comparable period last year, with cash conversion expected to rise above 90%.
"Given the group's high cash generation and confidence in the long-term outlook, we are pleased to announce the launch of a £100 million share buyback,” Wadey added.