QinetiQ Group PLC (LSE:QQ.) came under pressure as the weapons and defence specialist cautioned orders in the UK had slowed, for now at least.
Guidance for this year was maintained at “high single-digit organic revenue growth at a stable underlying margin with high cash conversion”.
By 2027, Qinetiq added it still expects to generate £2.4 billion or organic revenue with.a 12% margin.
The statement added, though, that the short-term order intake in the UK has been slower than expected due to the fiscal environment.
As a result, it is resizing capabilities in its UK Intelligence business, although the UK defence business which has greater exposure to longer duration contracts has remained strong.
Global demand remains robust, it added, with awards for ‘several’ highly relevant and strategic programmes and the order intake is in line with last year at £1.3bn
Steve Wadey, Group Chief Executive Officer added the group remains highly relevant and differentiated capabilities, an established presence across key growth markets and an orders pipeline worth over £11bn “giving us significant long-term visibility."
Shares fell 9% to 383p.