QinetiQ warns of delays to some UK contracts

The EMEA Services division continues to see some customer contract award decisions deferred

Despite the delays, QinetiQ maintained full-year guidance

Defence firm QinetiQ (LON:QQ.) delivered an in-line trading update and maintained its guidance for the full-year, despite some bureaucratic delays to contract approvals.

In a brief update, it said the Government's Strategic Defence and Security Review (SDSR), and public consultation on the proposed approach to calculating the baseline profit rate for single source contracts, are both underway. 

It added that the EMEA [Europe, Middle East and Africa] Services division continues to see some customer contract award decisions deferred due to uncertainties in the UK market or delayed by requirements for additional approvals.

As anticipated, the group's Global Products division continues to trade at similar levels to the prior year.

“The SDSR is expected by year-end and will provide clarity,” said Liberum.

“Proceeds of any savings generated can now be reinvested rather than banked by the Treasury, which is a positive step. Disruptive technology spending in the S&T budget (albeit currently just 1.2% of overall spending) rises from 5% to 20% over 3 years,” it added.

Shares eased a halfpenny to 224.3p in a strongly rising market.

Quick facts: QinetiQ

Price: 295 GBX

Market: LSE
Market Cap: £1.67 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Amundi Physical Gold ETC: Europe's cheapest ETC now trading on the London...

Amundi Physical Gold ETC's Ashley Fagan who's head of ETF, Indexing & Smart Beta Development for UK and Ireland introduces the product to Proactive London's Andrew Scott. She says they've seen a great deal of demand from European as well as UK investors and that's what lead them to list...

2 days, 14 hours ago

2 min read