Qinetiq Share Discussion Threads

[essentialinvestor] 11/11/2022 16:54

wad, we can only but hope.

I've held QQ previously but had some reservations on the recent large acquisition, which arguably raises the risk profile somewhat. Hopefully it all goes according to plan.

[doobz] 11/11/2022 16:26

Annoying, stopped out on trailing today. Any news or info? I've seen other defencers hit

[wad collector] 11/11/2022 14:58

Drop is sector wide. Peace is coming.....

[pooky] 11/11/2022 05:15

From the Telegraph

Qinetiq said that overall it took in £800m of orders in the six months to the end of September and that it now has £3bn of work.

Sales rose 12pc to £673m, led by orders from the US, where it is a contractor on the Electromagnetic Aircraft Launching System (Emals) being developed for the latest Gerald Ford-class American aircraft carriers to launch jet fighters and other craft, replacing steam-driven catapults

Qinetiq has developed systems to deal with Emals' power demands and to control the launch. The programme has been overseen by General Atomics, developer of Predator and Reaper drones.

Mr Wadey said: “There's long-term production for us, through that programme.

“And the American government is engaging several countries around the world that are interested in adopting electromagnetic launch and recovery systems” including France, he said.

Dragonfire is being developed by Qinetiq, Leonardo, and missile company MBDA, among others.

[bartyb] 10/11/2022 14:55

QinetiQ upgrades annual revenue guidance on interim revenue surge
Thu, 10th Nov 2022 12:01Alliance News
(Alliance News) - QinetiQ PLC on Thursday lifted its dividend by 4.3% as interim revenue and profit surged.

For the six months that ended on September 30, revenue increased by 12% to GBP673.4 million from GBP600.1 million the year before.

Pretax profit surged to GBP104.5 million from GBP42.4 million, as orders grew to GBP798.8 million from GBP677.8 million.

Earnings before interest, tax, depreciation and amortisation jumped to GBP132.5 million from GBP73.3 million a year earlier.

Chief Executive Officer Steve Wadey said: "Our first half results demonstrate the strong demand we continue to see from our customers for our distinctive offerings. We have delivered good programme execution and delivery across all our major contracts. Our home countries of UK, US and Australia have all achieved significant organic growth and the US has performed particularly well, delivering improved and consistent performance."

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Net cash at Sep 30 grew to GBP264.0 million from GBP139.2 million a year ago.

QinetiQ declared an interim dividend of 2.4 pence per share, up 4.3% from 2.3p a year prior.

Looking ahead, QinetiQ said it's increasing revenue guidance, and will deliver profit in line with financial 2023 expectations. Capital expenditure is expected towards the middle of GBP90 million to GBP120 million expected range.

It said it expects revenue to grow revenue to more than GBP2.3 billion by financial 2027, and targets an operating profit margin of 12%-13% in the mid to long-term.

Shares were down 1.8% at 355.20 pence each on Thursday in London.

By Xindi Wei; [e-mail]

[bartyb] 10/11/2022 14:44

Why is it dropping after strong results

0/11/2022 7:00am
UK Regulatory (RNS & others)

Qinetiq (LSE:QQ.)
Intraday Stock Chart

Thursday 10 November 2022

Click Here for more Qinetiq Charts.
TIDMQQ.

RNS Number : 9161F

QinetiQ Group plc

10 November 2022

Interim Results

10 November 2022

Contributing to global and national security

Results for six months to 30 September 2022 ('H1 FY23')


Statutory results Underlying* results
H1 FY23 H1 FY22^ H1 FY23 H1 FY22
Revenue GBP673.4m GBP600.1m GBP673.4m GBP600.1m
Operating profit GBP100.1m GBP41.0m GBP74.1m GBP53.4m
Profit after tax GBP112.4m GBP22.3m GBP65.4m GBP46.6m
Earnings per share 19.5p 3.9p 11.4p 8.1p
Interim dividend per share 2.4p 2.3p 2.4p 2.3p

Orders GBP798.8m GBP677.8m
Order backlog GBP2,968.6m GBP3,007.6m

Net cash flow from operations GBP99.5m GBP64.2m GBP106.8m GBP70.2m
Net cash GBP264.0m GBP139.2m GBP264.0m GBP139.2m



* Definitions of the Group's 'Alternative Performance Measures'
can be found in the glossary
^ Prior period comparatives have been restated due to a change
in accounting policy in respect of software implementation costs.
See note 1 to the interim financial statements.

Strong and consistent operational performance across the Group


- Orders up 18%, revenue up 12% and underlying operating profit
up 39%
- On an organic constant currency basis, and excluding the impact
of the write-down in FY22 half year results: Orders up 11%,
revenue up 8% and underlying operating profit up 7%
- Consistently strong cash conversion at 106% cash conversion
pre-capex
- Statutory operating profit GBP100.1m, assisted by FX gain on
Avantus acquisition
- Underlying EPS up 41%; 2.4p interim dividend declared - one
third of FY22 dividend

Disciplined execution of multi-domestic growth strategy


- Strong programme delivery across all major contracts
- Good order intake across the Group at c.GBP800m
- Increased investment in people and capabilities for the future
- Step-change through strategic acquisitions in the US and Australia

On-track to deliver five year strategic growth ambition; GBP2.3bn revenue at stable margins


- Increasing revenue guidance and will deliver profit in-line
with FY23 expectations
- Respond to increased demand for our distinctive offerings driven
by threat environment
- Close Avantus and Air Affairs deals and execute integration
plans
- Drive sustainable growth in our >GBP20bn addressable market


Steve Wadey, Group Chief Executive Officer of QinetiQ said:

"World events continue to reinforce the vital importance of a technologically advanced defence industry to society and the needs of our customers for differentiated solutions, aligned with our strategy. I am immensely proud of how our people have supported our customers at this time of need: we are fulfilling our company purpose and contributing to global and national security.

Our first half results demonstrate the strong demand we continue to see from our customers for our distinctive offerings. We have delivered good programme execution and delivery across all our major contracts. Our home countries of UK, US and Australia have all achieved significant organic growth and the US has performed particularly well, delivering improved and consistent performance.

We have also secured two strategically significant acquisitions in the US and Australia, Avantus and Air Affairs respectively, which demonstrate the disciplined execution of our growth strategy and capital allocation policy. We have increased our investment in our people and capability for the future to enable our long-term growth, as we continue to build an integrated global defence and security company. We are on-track to deliver our 5 year strategic growth ambition and enhanced shareholder returns."

Interim results presentation:

We will be hosting an in-person results presentation at 09:30 GMT at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. Registration to join in-person or via the live webcast is available here:

[someuwin] 14/10/2022 11:36

QinetiQ Group (LON:QQ – Get Rating)‘s stock had its “buy” rating reaffirmed by stock analysts at Berenberg Bank in a research note issued on Wednesday, MarketBeat Ratings reports. They presently have a GBX 440 ($5.32) price objective on the stock. Berenberg Bank’s price target would suggest a potential upside of 28.58% from the stock’s previous close.

[doobz] 12/10/2022 09:32

Solid update added this morn, well done qq.

[rimau1] 12/10/2022 07:33

Excellent update, consistent with Chemring messaging last week. Looks like the new management team in the US has turned the business around (was my only concern here) and we should also have an FX tailwind up our sleeve for the remainder of FY23 which understandably they don’t talk about given its volatile nature. Nice long term hold for me alongside Chemring and BAE.

[brain smiley] 06/10/2022 16:12

Trading statement 12th of October.Should be interesting.

[wad collector] 18/9/2022 14:27

Article on the UK defence industry in IC this weekend discussing that Truss 3% GDP defence spend planned increase , and the beneficial effect on BAE and Qinetiq.
Points out that if the 27% defence personnel increase materialises, it will give QQ a lot of training to tender for.

[someuwin] 02/9/2022 08:45

"A Liz Truss government will likely need to grow the Armed Forces by more than 40,000 military personnel and spend an extra £157bn to meet a pledge to increase defence spending to 3% of national income by 2030, new analysis has revealed.

The paper from a top think tank said such a boost in defence expenditure - from about 2% at present - would mark the biggest rise since the early 1950s, when the UK was concerned the Korean War might escalate into a wider conflict with the then Soviet Union. It would equate to a 60% rise..."

[wad collector] 12/8/2022 18:22

That was also quite a hit to take , selling 6% under . Someone wants out fast.

[brain smiley] 12/8/2022 09:13

That's nearly a 5% stake sold (explains yesterdays falls as well).Could be profit taking or wariness over buying Avantus from private equity

[someuwin] 12/8/2022 08:34

Just an insti taking some profit causing the drop...

"An undisclosed institutional shareholder has sold around £90m worth of Qinetiq shares in a placing.

According to terms seen by Bloomberg, the shares have been sold at 352p each, which is a discount of around 5.9% to the closing share price on Thursday."

[wad collector] 09/8/2022 10:30

Curious timing to announce a contract win, they seldom do announce them, the last RNS was the Jan21 Typhoon contract. Last yr they won a $64M contract in the US for the SPUR Robot but I don't think that they made any announcement.
Good that they are blowing their trumpet , let's hope there are many more ahead.

[someuwin] 09/8/2022 07:12

RNS Number : 3235V

QinetiQ Group plc

09 August 2022

News release

QinetiQ Group plc

Delivering organic growth in the US with $45m contract win

09 August 2022 - QinetiQ Group plc ("QinetiQ" or the "Company") has won a contract to provide technical services to the US Army. The five year contract, worth up to $45m, will provide services for the Development Command (DEVCOM) Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance (C4ISR) at the Fort Belvoir Prototyping Integration Facility (PIF).

The contract, a 1-year base period followed by four 1-year option periods, will provide technical services for system development, fabrication, sensor and system integration, prototyping of multi-function sensor suites, and technology assessment efforts aimed at supporting current and future DEVCOM C5ISR PIF Belvoir customers.

This contract is an important competitive win for the business and reinforces our continued value to our customers. It is the largest significant win for our strengthened US leadership team, focused on driving short-term operational performance and organic growth. This success demonstrates our strategy is working and provides further confidence as we prepare for the integration of our recently announced acquisition of Avantus Federal LLC.

[wad collector] 08/8/2022 09:42

sp up 1% this morning suggests the market does not view it as good or bad!

[wad collector] 07/8/2022 10:19

These sort of acquisitions always seem pretty opaque to me, in terms of trying to assess whether they are beneficial. Unless you have a clear understanding of all the metrics of the company , and how it might be synergistic, how can you judge? The numbers quoted in the news release relate to the last year, but was that typical?
A quick look at Avantus reveals that it was 8 companies that coalesced in 2020 , so not clear how to get easy access to previous accounts.

[stevenlondon3] 06/8/2022 09:54

Interesting it is being financed by cash and debt. Must admit I would not be surprised by a share issue before the year end.

[brain smiley] 05/8/2022 22:20

Is this a good deal? Will the stock rise? Monday morning will be interesting.

[someuwin] 05/8/2022 19:15

Late RNS - US Acquisition - looks very positive!

[wad collector] 05/8/2022 15:37

Big article on the Defence Sector in IC today , looking at the British options. It points out the strong position of BAe but concludes that QQ is the pick of the bunch because of its technology focus rather than hardware. Suggests that a 450p price would not be excessive.

[wad collector] 26/7/2022 11:35

Q1 has pushed a ATH now.
I see that compared to BAe , the P/E of 24 here is rather weaker than 14 of BAe, but guess that represents the bias towards more cyberbased products here , and that seems to be more popular than objects to the market

Strong first quarter performance

Building on the second half momentum of FY22, we have made a good start to FY23 with strong group operational performance. Order intake has continued to remain strong and revenue, profit and cash are in-line with expectations. Our visibility on revenue under contract for FY23 has increased to GBP1.05bn, up from GBP900m at April 2022. Consequently, we remain confident of delivering in-line with our expectations, with mid-single digit organic revenue growth and operating profit towards the mid-point of our 11% to 12% short-term operating profit margin target, rising to 12% to 13% operating profit margin in the medium term.

Recent world events have reinforced the long-term needs of our customers, including capabilities utilising differentiated technology, alongside test and training solutions that are directly aligned with our strategy. In all of the markets in which we operate globally Governments are seeking to enhance their defence and security stance against the evolving future threats, with rising defence spending in all of our three home countries: UK, US and Australia. More significantly still, our six distinctive offerings are well aligned with segments of the defence budgets that are priorities to combat future threats.

We have seen a strong start to the year in EMEA Services and continued good progress in the US and other areas of Global Products. Overall, the Group is showing continued growth and profitability in-line with our expectations, both in the short and medium term.

[someuwin] 18/7/2022 08:42

Breaking all time high now.

Q1 Trading update soon.