QinetiQ Group PLC (LSE:QQ.) reported a 9% increase in orders and called its backlog robust as it announced full-year results for the 12 months ended March 31 2022, saying it is entering the new financial year with confidence and a healthy book.
The Hampshire-headquartered defence company has seen its share price rise more than 30% amidst war and rising geopolitical uncertainty and today told investors that it saw record level of orders during the year to total some £1.23bn.
It described excellent growth in Australia, where revenue was up 26%; at the same time UK business was up 12% and whilst the US recovery was said to be slower, the company said momentum was growing.
QQ noted that it has so far delivered 75% revenue growth over the past six years, and it intends to repeat this feat again over the next five years.
"Throughout the last year our people have continued to partner with our customers to deliver high-value solutions critical to current and future national defence and security challenges,” said chief executive Steve Wadey.
He added: “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.”
Revenue for the financial year amounted to £1.32bn, up from £1.27bn in the prior year,
QQ said it is confident that it will deliver in line with its current expectations for the current financial year – which are for mid-single digit percentage organic revenue growth.
It also noted that this year’s operating profit margin would be "towards the middle of its 11 to 12% expected range", which is lower than the firm’s long-term guidance, because of inflationary pressures and higher capital spending (pitched at £90mln to £120mln).
Underlying profit was down 9% at £137.4mln, due to project write-downs (if excluded, profit would amount to £151.9mln, compared to £151.8mln in the 2021 financial year). Statutory profit was reported as £117.5mln, up from a £108.7mln comparative for the prior year.
Cash flow amounted to £215.4mln and QQ ended its financial year with £225.1mln of net cash.
The company is increasing its final dividend slightly year-on-year to 5p (from 4.7p) to take the full year total to 7.3p (from 6.9p).
Trading at 361p in London, QQ shares are down 1.2% for the day though remain some 32% higher in 2022 to date.