UPDATE: QinetiQ Fiscal Year Net Profit Almost Doubles; Outlook Upbeat
By Jonathan Buck Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- QinetiQ Group PLC (QQ.LN) Thursday reported full-year net profit almost doubled due to an increase in business in North America and favorable foreign exchange rates, and gave an upbeat outlook.
The U.K. defense technology company in a statement said: "We are well placed for continued growth even as governments scrutinize their spending and rein in their overall budgets.
"The physical and cyber security threats to governments and countries remain as prevalent as ever and we believe that defense, security and intelligence continue to be important markets."
QinetiQ said its order intake increased 25% to GBP1.60 billion from GBP1.28 billion a year ago.
The U.K. Ministry of Defence is QinetiQ's biggest customer. Defense spending in the U.K. is expected to be hit in coming years as the British government seeks to curtail public expenditure as it pays down debt built up by the bailout of banks and various economic stimulus plans.
That was evident in QinetiQ's results. MOD research spending fell roughly 23% last year. QinetiQ said revenue last year in the Europe, Middle East and Africa region grew 3%, or only marginally on an organic basis, helped by growth in services and technology solutions.
Following the example of other U.K.-based defense companies such as BAE Systems PLC (BA.LN) and Cobham PLC (COB.LN), QinetiQ is pursuing a strategy to boost its presence in the U.S., which is the world's biggest spender on defense.
It generated 47% of its revenue in the U.S. during the fiscal year, just below its long-term goal of 50%.
QinetiQ delivered organic revenue growth of 15% at constant currency rates and 42% in reported terms, helped by the weakness of sterling against the dollar. Its performance in North America also was boosted by new contracts from the Department of Homeland Security and the National Aeronautics and Space Administration.
Its operating margin in North America slipped to 10.8% from 11.5% a year ago, but it said that was at the top end of its U.S. peer group.
Chief Executive Graham Love told reporters that QinetiQ's aggressive spree of acquisitions in the U.S. in recent years was likely to slow. However, he said QinetiQ would continue to consider targets that would bring different capabilities and skills.
QinetiQ reported net profit in the year ended March 31 rose to GBP93.6 million from GBP47.4 million in the same period a year ago. Revenue rose 18% to GBP1.62 billion from GBP1.37 billion.
Operating profit before amortization of intangible assets arising from acquisitions and reorganization costs - a closely watched measure of underlying performance - rose 22% to GBP155 million from GBP127 million.
Analysts on average had forecast operating profit at GBP148.3 million, according to figures provided by the company.
Earnings-per-share rose 19% to 15.9 pence from 13.4 pence, and the board proposed an 11.3% increase in the final dividend to 3.25 pence per share.
At 0839 GMT, QinetiQ's shares traded up 2 pence, or 1.4%, at 146 pence, making it one of the top gainers in the FTSE 250 index, which was down 2.2%. The shares have fallen 8% in value since the start of the year and 22% in the past 12 months.
Company Web site: www.qinetiq.com -By Jonathan Buck, Dow Jones Newswires; +44 207 842 9237; jonathan.buck@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=tCnGkHTeWgmwPEzABnwFQg%3D%3D. You can use this link on the day this article is published and the following day.
Publié le 21 Mai 2009 Copyright © 2009 Dowjones
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