QinetiQ Group PLC (LSE:QQ.) said it is confident of meeting expectations for the financial year 2022 after a strong operational performance in the third quarter to end-December 2021.
The defence group said orders now stand at £900mln, with more than 95% of its full-year revenue covered under contract.
Revenue, operating profit and cash flow are in line with forecasts, it said in a trading update.
Following discussions with a customer on previously announced problems with a large project, Qinetiq said the contract is likely to close at the end of its term in the current financial year. Write-downs remain consistent with the £14.5mln included in the interim results, it added.
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The company said its US operations are making good progress towards recovery, with second-half US revenue expected to be in line with the same period last year.
Meanwhile, the EMEA Services business continued to perform robustly in the third quarter across orders, revenue, profit and cash, particularly in the UK and Australia.
Shares were 4.54% higher at 283.10p in early trade.