Qinetiq Share Discussion Threads

[estienne] 19/1/2024 16:44

QinetiQ run the Hebrides range and most of the MoD test sites

[grahamburn] 19/1/2024 15:48

Courtesy of RibbleWader on BAE thread:

During a trial at the MOD’s Hebrides Range, the DragonFire laser directed energy weapon (LDEW) system achieved the UK’s first high-power firing of a laser weapon against aerial targets.

........DragonFire is led by the Defence Science and Technology Laboratory (Dstl), on behalf of the UK MOD, working with its industry partners MBDA, Leonardo and QinetiQ.

[18bt] 19/1/2024 14:17

Interesting - could be a major growth area.

[rimau1] 19/1/2024 13:03

Almost certainly involved in the successful laser tests announced by the MoD today. https://www.bbc.co.uk/news/uk-68031257

[someuwin] 19/1/2024 09:49

NED buys £40k worth. He must have read the Times.

[erbullion] 19/1/2024 09:24

Tipped in The Times today

[disc0dave46] 16/1/2024 15:59

Money for nothing for them, but the facts are out there for everyone to see, if they can be bothered.

[rimau1] 16/1/2024 13:22

Consistent with the views here: Shore Capital analyst Jamie Murray said that, at the current price, a £100mn buyback would reduce the defence contractor's share count by around 30mn, which should mean an earnings per share uplift of 5 per cent. Qinetiq's shares now trade at just 10.8 times forecast earnings, well below their five-year average of 14 times and the benchmark for peers of over 19 times.

[disc0dave46] 16/1/2024 11:41

IMO higher, FY24 eps 28p, conservative PE 15x (sector median is 19x) gives 420p.Forecast growth FY25 is 9% but the BB will generate an additional say +5%, so IMO 32p eps is possible giving 480p.Don't hold but looking at this sector given the current conflicts.

[johndoe23] 16/1/2024 09:03

I would say 400p is a reasonable target the next 12 months

[wad collector] 16/1/2024 08:50

The price of the buybacks just went up and they haven't even started!

I like the way 2024 is starting here though, I expect a flurry of broker reratings.

[johndoe23] 16/1/2024 08:10

Level 2 looking strong, first headwind maybe 350p

[johnrxx99] 16/1/2024 08:08

A positive update. It has a lot of catching up to do and while I'd rather have had the 100m as dividend, at least they are trying and doing what everyone else is doing, it seems.

[rimau1] 16/1/2024 08:06

This is just too cheap at 12x earnings and demonstrating that the blip last quarter really was timing - cash conversion back on track. Nice £100m buyback to complete within 12 months should provide support. Overweight here now compared to Chemring as the value on offer is compelling.

[johndoe23] 16/1/2024 07:41

All good here

[someuwin] 16/1/2024 07:08

QinetiQ Group plc

Third Quarter Trading Update and

Share Buyback Programme

16 January 2024 - QinetiQ Group plc ("QinetiQ" or the "Group") today issues a trading update covering its third quarter and announces its intention to commence a share buyback programme to return up to GBP100 million to shareholders over 12 months.

On-track to deliver full year expectations

The Group has delivered good operational performance in the third quarter, with continued organic revenue growth and operating profit margin in line with our expectations. Order intake has continued to remain strong, with year-to-date orders at circa GBP1.35bn and revenue under contract for the full year improving to 95%, higher than this time last year. As expected, cash generation has been very strong with cash conversion significantly above 100% in the quarter. We are now back in-line with our normal cash profile and on-track to deliver 90%+ cash conversion for the full year, as previously guided. Overall, the Group is making good progress and we remain on-track to deliver in line with expectations for FY24 [1] .

EMEA Services has continued to perform particularly well with strong revenue growth offsetting modestly lower Global Solutions revenue, due to longer than expected continuation of US market uncertainty and budget delays. Reflecting this Avantus revenue growth will be around the lower end of our second half expectations, however the business continues to win significant new business strategically aligned to national defence and security priorities, pleasingly ahead of our plan, with $872m [2] of new contract awards so far this year. Strong orders momentum and good programme execution, demonstrated by the successful transition of the Tethered Aerostat Radar System (TARS) under our operational control ahead of schedule in December, underpins our continued confidence in Avantus delivering our medium and long-term growth expectations.

Capital allocation and launch of GBP100m share buyback programme

Our strategy to deliver long-term sustainable growth is unchanged and underpinned by our disciplined capital allocation policy. As explained at our Investor Seminar in October 2023, we continuously evaluate the deployment of our capital to maximise value through organic and inorganic investments and to deliver healthy returns for our shareholders, whilst maintaining a prudent balance sheet.

During the third quarter we have continued to manage our pipeline of inorganic opportunities, but at this present time no potential acquisitions meet our rigorous strategy-led and financial criteria. Given the strength of the Group's balance sheet, the highly cash generative nature of the business and the Board's view of the current undervaluation of the Group, we have concluded that now represents a compelling time to return excess capital to shareholders. We are therefore pleased to announce the launch of a GBP100m share buyback programme in February 2024, subject to shareholder approval, that we expect to complete over the next 12 months.

The proposed share buyback programme represents an attractive use of our capital to drive shareholder value, whilst maintaining leverage less than 1.5x (net debt/EBITDA) and maintaining the financial flexibility to invest in the ongoing execution of our strategy to deliver sustainable growth and attractive returns.

Steve Wadey, Group Chief Executive Officer said:

"QinetiQ has a critical role in ensuring our customers across our home countries of the UK, US and Australia have the defence and security capabilities they need. Our excellent order intake demonstrates the continuing demand for our high-value, cutting-edge services and products. Our operational performance in the third quarter underlines our confidence in delivering another year of good organic growth at stable margins with strong cash conversion.

"Given the Group's high cash generation and confidence in the long-term outlook, we are pleased to announce the launch of a GBP100m share buyback programme to increase returns to shareholders, whilst maintaining the ability to deliver our long-term growth strategy."

[wad collector] 12/1/2024 13:55

TU Tuesday.

[johndoe23] 02/1/2024 14:41

Got catching up to do 350p minimum

[wad collector] 02/1/2024 12:08

Well 2023 was not a good year here, let us hope that 2024 it behaves more like the other defence companies.

[dondee] 15/12/2023 10:11

Why are you posting that now? It was in November

SO?

[someuwin] 14/12/2023 11:51

Got to be good for QQ

[spooky] 08/12/2023 14:42

Why are you posting that now? It was in November.

[dondee] 08/12/2023 12:52

Time to buy?

[dondee] 08/12/2023 12:51

QINETIQ WINS $170M CONTRACT WITH US HOMELAND SECURITY DEPT
(Sharecast News) - Qinetiq Group said it's Avantus unit has won a five-year $170m contract with the US Department of Homeland Security for its Tethered Aerostat Radar System (TARS).
TARS provides detection, tracking and monitoring capabilities in diverse environments at and beyond the US borders, Qinetiq said in a statement on Monday.

Under the deal, 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".

TARS is the largest new business competitive win for Avantus since its acquisition last year by Qinetiq. The contract takes the total new awards this year for Avantus to $827m, the company added.

Reporting by Frank Prenesti for Sharecast.com

[spooky] 08/12/2023 11:56

Defence spending fears do not appear to be affecting CHRT, so its probably not that. Strange.