Qinetiq Share Discussion Threads

[wad collector] 20/11/2023 13:03

See it as a buying opportunity then....

[johndoe23] 20/11/2023 10:24

Strange market reaction, lot of stops hit this morning

[johndoe23] 20/11/2023 07:31

Very good news!

[someuwin] 20/11/2023 07:05

20 November 2023

News release

QinetiQ Group plc

$170m US new business contract win underpins Avantus growth

20 November 2023 - QinetiQ Group plc ("QinetiQ") is pleased to announce that it has won a 5-year $170m contract with the US Department of Homeland Security for the Tethered Aerostat Radar System (TARS).

TARS is the largest new business competitive win for Avantus since our acquisition last year and builds on recent significant contract awards, reported in our Interim Results last week. This win takes the total new contract awards this year for Avantus to $827m, equivalent to more than 2.5x years of revenue cover. These major contract wins deliver new incremental business, building momentum to deliver strong revenue growth in the second half of this year and beyond, underpinning our confidence that Avantus will deliver double-digit revenue growth at stable margin into the medium term.

Avantus has transformed our customer access in the US, expanding our customer base and creating a disruptive mid-tier business in the US. During the first half of the year, we have also identified new business opportunities worth an additional $1.5bn over the next five years, created through the combination of capabilities across the US and our other markets to drive our future growth plan.

TARS provides detection, tracking and monitoring capabilities in diverse environments at and beyond the US borders . Under this 5-year contract, QinetiQ will deliver aerostat operations, air-surface radar operations, ground control and data networking systems monitoring, and data analysis in support of border security and air sovereignty missions. The programme will be delivered through the provision of mission support, operations and maintenance, and lifecycle and programme management.

Steve Wadey, Group Chief Executive Officer of QinetiQ, said:

"Winning TARS is another significant and exciting milestone in the US - a clear demonstration of Avantus delivering growth. TARS is an integral part of our customer's mission to protect the US border and a critical capability to US national security . This win further reinforces our growth plan for Avantus and our wider business in the US."

[wad collector] 17/11/2023 08:12

IC article looks at results and points out ;

1. The 28% fall in statutory profits was largely due to the loss of value of a Forex hedge that had performed profitably the previous year.
2.Unexpected fall in US revenue, which will not be helped by failure to win the US Army fighting vehicles contract.
3.Fall in cash generation.

I do wonder with these sort of analyses whether the opinion is generated to justify the share price change ,or a genuine belief.
FWIW they do conclude it is a BUY , though they also said BUY in May and it has fallen by 55p since then.

[doobz] 16/11/2023 18:12

Long term hold for me and everything looks solid, ignoring the noise. Gla

[wad collector] 16/11/2023 15:02

Indeed, added at 325p. I figure I must be missing something but it seems a reasonable opportunity for another 5-10 % over the coming months.

[johndoe23] 16/11/2023 12:52

No enthusiasm whatsoever

[wad collector] 16/11/2023 10:00

Not much enthusiasm in the market for the HY figures, even though revenue and profit up. Maybe it is the first reading of the numbers it appears that operating profit is down 30%, however the underlying figure is actually up 35%.
It was the Avantus purchase that distorted last years figures.
And they tell us not to worry about the rise in debt, that is mainly about Avantus too.
The divi is up too, not that many people are here for the yield, which will be about 2% if they match the main dividend rise with this one. But more importantly, I think, the future orders are up and the bottom line,

"Full year performance in-line with market expectations, longer-term guidance unchanged"

So nothing to lose sleep about, the market will change its mind as the week progresses....

[erbullion] 13/11/2023 08:37

Interim’s this Thursday

[johndoe23] 25/10/2023 07:36

Another share which should be a lot higher, but isn't. Let's see...

[someuwin] 25/10/2023 07:30

QinetiQ Group plc

25 October 2023

News release

QinetiQ Group plc

Investor Seminar: Drivers of our sustainable growth

25 October 2023 - QinetiQ Group plc ("QinetiQ" or "the Group") today is hosting a seminar where we will outline our overall strategy and drivers of our sustainable growth.


1. UK Intelligence - a high growth GBP400m revenue business that has
delivered 28% CAGR [1] over the last 4 years, well positioned as
a critical partner to our UK defence and intelligence customers;

2. United States - a $600m revenue disruptive mid-tier defence and
intelligence business following our successful acquisition of Avantus
last year, with significant growth momentum and a qualified pipeline
of opportunities of over $2bn; and

3. Australia including global threat representation - an A$400m revenue
specialist advisory, engineering and threat representation products
and services business with significant global growth opportunities.

The defence and security context worldwide has heightened the need for our six distinctive offerings giving significant growth potential within our >GBP30bn addressable market. We have delivered 9% organic revenue growth over the last four years, over twice the rate of growth in the defence budgets of our three home countries: the UK, US and Australia. Defence budgets are increasing around the world and we expect to continue delivering growth outpacing those budgets, driven by our structural alignment to high priority market segments that are increasing at faster rates.

Based upon our clear strategy and unique set of distinctive offerings, we have a robust plan to grow our company organically to GBP2.4bn revenue [2] at stable margins, with optionality for strategic acquisitions to reach our GBP3bn revenue(2) ambition at 11-12% underlying operating profit margin and ROCE [3] at the upper end of the 15-20% range. We have a clear and robust capital allocation policy and are targeting to maintain a prudent balance sheet with leverage [4] under 1.5x. With capital intensity reducing we expect to see cash flow yields improve over the next few years.

The seminar will be presented at 101 Park Avenue in New York. You are invited to join us from 08:15 EDT to see a selection of our capabilities and products, as well as meet our leadership team. The presentation will start at 09:00 EDT (14:00 BST) and there will be an option to view online if you cannot join us in person. Access to the event is via registration on our website:



A recording of the seminar will be available at www.QinetiQ.com/investors after the event. There will be no new material information disclosed on current trading.

[johndoe23] 17/10/2023 10:18

Next stop 350p

[johndoe23] 16/10/2023 15:49

Important to close above 335p

[johndoe23] 14/10/2023 16:28

Would have thought with all the turmoil in the world currently, this would be a strong riser.

[ttg100] 14/10/2023 10:07

Our again at 336.2 which is OK but a bit disappointing
Good Luck all
Have a nice weekend

[wad collector] 13/10/2023 08:25

About 2/3rd of QQ revenue is from Long Term Contracts (Worldwide) ,though hard to tease out of the results exactly how much is UK and how much ROW. But that still leaves quite a lot of business that is not so regulated.
Clearly share price performance is multifactorial and partly based on future expectations, so maybe what I was trying to say is that it is disappointing to not see the market viewing QQ more optimistically.

[salfordimp] 12/10/2023 20:20

For collector. I hope you are aware that the majority of the UK defence contracts are under single source regulations and so are restricted to the Government approved profit rate.
Hence the reason to diverse more into USA, Canada, Germany an Australia

[wad collector] 12/10/2023 19:53

Must confess I am a bit disappointed by QQ share price performance over last couple of years. There are obvious reasons why the sector is a vital one that justifies priority spending and that QQ is a leading supplier, but the share price has not performed as well as I expected considering the high profile of defence issues in the West.
At least it has held its price unlike most of my holdings...

[kalai1] 11/10/2023 15:04

QinetiQ Group plc issued a trading update for its second quarter of trading this morning. The Group enjoyed strong organic first half performance and remains on track to deliver full year expectations. The business also delivered improved operating profit margin in the first half of the year compared to the same period last year and secured a record first half order intake at c.£950m. The business is on track to deliver another year of good organic revenue growth at stable margins in-line with management’s full year expectations and long-term guidance. Valuation is attractive, the balance sheet is solid. Near term momentum is lacking, but other than that the share has solid growth and profit potential and is worth knowing about for the longer run. As a defense focused company revenues should also be relatively unaffected by near term UK recession. BUY...

...from WealthOracle

[estienne] 11/10/2023 11:33

You have to remember that QinetiQ thrives through the Long Term Partnering Agreement which is the main contract it has with the MoD. Its main business is not as an OEM, a manufacturer, 3rd party provider or even a system integrator.

[johndoe23] 11/10/2023 09:05

Damp squib reaction