British defence contractor QinetiQ Group PLC (LSE:QQ.)’s generous shareholder distribution policy will be a point of focus in next week’s annual earnings report.
The FTSE 250-listed company’s 90% cash-conversion target saw it commence a £100 million share buyback in the third quarter, as less cash was directed to M&A due to a lack of acquisition opportunities.
Qinetiq’s forward guidance in last-year’s annual report forecasted high-single-digit annual revenue growth from 2023’s £1.58 billion in sales and an operating margin at the lower end of the 11-12% range.
Capital expenditure is expected to remain within the £90-£120 million range.
Qinetiq is aiming to build out a £3 billion-plus company valuation by 2027, delivered through “strategically aligned acquisitions”.
It is currently valued at £2 billion with a 349.2p share price.