QinetiQ Group PLC (LSE:QQ.) said it delivered a “strong” fourth quarter and expects full-year results to be ahead of previous guidance, bootsed by 'recent world events'.
The defence and security technology company said the performance was driven by “significant growth” in the European, Middle East and African (EMEA), offsetting rising inflation.
In the short term, margins are expected to take a hit due to inflationary pressure and continued investment with capital expenditure for the next financial year expected to be around £120mln, the upper end of its guidance.
Despite this, the company retained its medium to long-term guidance, with annual revenue growth expected over the next five years.
The company said acquisitions are targeted to help with growth as it sets itself a long-term operating profit margin target of 12%-13%.
“Recent world events have reinforced the long-term needs of our customers, including capabilities utilising differentiated technology, test and training solutions which are directly aligned with our strategy,” said chief executive Steve Wadey.
The defence and security technology company said it also saw continued growth in Australia and the UK thanks to delivery across all its major contracts, although US performance was hampered by a constrained US defence budget.
Full-year order intake is expected to be £1.2bn, with revenue growth of roughly 5% and an underlying operating profit of at least £135mln, according to a statement.
Net cash for the year ending 31 March 2022 is expected to be approximately £225mln.
Shares remained steady, up 1% to 341p.