A second quarter update from Qinetiq stated that the company’s new Engineering facility in Melbourne is establishing sovereign capability to deliver specialised command and control vehicles.
The initial response to Qinetic’s new Engineering facility in Melbourne has been promising, with a growing demand for its services, now poised to establish a sovereign capability for delivery of specialised command and control vehicles.
The Australian ministry of defence develops implementations industry plans for each sovereign capability priority that outlines the critical industrial capabilities that underpin each priority and details government actions to support the industrial base in these sectors.
The Q2 update statement
The Q2 update statement also revealed QinetiQ Group plc has achieved impressive results in the second quarter, leading to a notable increase in organic revenue growth and operating profit margin during the first half of this year, as compared to the corresponding period in the previous year.
“I am extremely pleased that the Group continues to perform well, delivering strong organic revenue growth at stable margins in the first half of the year, moderately ahead of expectations,” said Steve Wadey, Qinetiq Group Chief Executive Officer.
“Record first half order intake demonstrates that our distinctive offerings remain in high demand across all our home countries, as our people continue to deliver high-value services and products critical to national defence and security,” he continued.
“Based on our strong first half performance, we have de-risked our full year results and are on track to deliver another year of good organic revenue growth at stable margins in line with our full year expectations.”
Optimistic financial performance outlook
In the first half of the year, cash conversion experienced a decline compared to the previous year, primarily attributed to short-term timing factors. However, the company remains confident that cash conversion for the full year will align with its previously provided guidance.
Qinetiq has managed to secure a first half order intake of approximately £950 million. This has not only bolstered its order backlog but has also significantly enhanced its revenue under contract for the entire year, up to 90%.
With a slew of substantial new orders and the renewal of major contracts, Qinetiq has successfully mitigated potential risks for the latter half of the year. As a result, it is poised to achieve yet another year of organic revenue growth, maintaining stable margins that align with its full-year projections and long-term guidance.
In the second quarter, the division secured several new programmes and renewed significant contracts. Notable examples include two substantial contracts: a five-year agreement worth $224 million has been awarded to deliver mission support to the US Space Development Agency (SDA); and a five-year contract valued at $127 million from the US Department of Defence (DoD) Strategic Capabilities Office (SCO).
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