QinetiQ Group PLC (LSE:QQ.), the defence technology specialist, has said it scooped up around £800mln of new orders in the past six months, with a number of new contracts won from defence departments in the UK, US and Europe, as governments tool up amid the war in Ukraine.
The company's Target Systems arm, a provider of unmanned air, land and surface targets for live-fire training and weapons system tests, was said to have secured “a number of notable wins and deliveries” for customer training exercises in unstated locations in Europe.
Overall, it was a “strong and consistent operational performance”, the company said, with order intake up 18% on the first half of last year, “good” organic revenue growth, profit “in-line” with expectations and “strong” cash conversion.
The FTSE 250-listed group said it was confident of meeting full-year expectations, as 90% of revenues are under contract.
In its EMEA Services arm, covering Europe, the Middle East and Africa, QinetiQ reported strong organic revenue growth and some “significant” new long-term contracts, including a £32m three-year deal with the UK Ministry of Defence (MoD) for the Future Combat Air System (FCAS) programme, a £26mln uplift to reflect UK inflationary effects to the Long Term Partnering Agreement with the MoD, a five-year contract extension with Boeing for wind tunnel services, and contracts totalling A$77mln in Australia through growth of its Managed Services Provider (MSP) programme.
The group's Global Products wing saw orders, revenue and profit above the second half of last year, with wins including a five-year contract worth up to US$45mln to support the US Army’s C5ISR Center at Fort Belvoir, and a multi-year research, development and technology integration contract worth up to US$49m with the US Army for imaging services.
In a statement, QinetiQ chief executive Steve Wadey said: “Our strategy to perform and grow continues to build momentum across the group, demonstrated by excellent order intake, good organic revenue growth, profit in-line with our expectations and three strategic transactions in the first half of the year."
The largest of the three transactions was the August acquisition of Avantus Federal in the US for US$590mln, with regulatory approvals underway and expected to complete by the end of calendar year.
More recently QinetiQ announced an agreement to acquire Air Affairs in Australia for A$53mln and sell QinetiQ Space in Belgium to Redwire Space Europe for €32mln.