AGM Statement

RNS Number : 1479A

QinetiQ Group plc

30 July 2008

 



QinetiQ Group plc

30 July 2008

Annual General Meeting and Interim Management Statement

QinetiQ Group plc ('QinetiQ'), the international defence and security technology company, is today issuing the following Interim Management Statement which covers the period from 1 April 2008 to 29 July 2008. This coincides with its Annual General Meeting which is taking place at 2.00pm today in London. At the meeting the Chairman of QinetiQ, Sir John Chisholm, will make the following statement:

Trading and financial position

The year has commenced well and the trading outlook remains in line with that described in the Group's preliminary results announcement on 28 May 2008. 

QinetiQ North America (QNA)

QNA has seen continued strong activity levels across its business and a recent reorganisation of the IT Services division across the Systems Engineering and Mission Solutions divisions positions us well to build on core strengths in these important markets. In the Technology Solutions Group Talon shipment levels remain strong and we have now delivered over 2,000 units to the US Department of Defense. The Mission Solutions division continues to increase the level of work it undertakes with NASA and recently won a $225m, nine year contract to support information management and communications activities at Kennedy Space Center. In addition it was awarded a $90m, three-year contract to provide ongoing launch support services across a variety of NASA sites. 

Europe, Middle East and Australasia (EMEA)

The year has started satisfactorily and the outlook for the full year remains in line with the Board's expectations. In the UK we continue to successfully provide MOD with value for money offerings such as the £24m, ten year award to provide through-life support to sustain the Harrier aircraft programme through the remainder of its service life. 

Unmanned vehicles continue to be a key area of focus. This was evidenced in the period with EMEA being closely involved in the UK's Mantis airborne Unmanned Autonomous System programme and the US Defense Advanced Research Projects Agency's (DARPA) Vulture air vehicle programme which will create a new category of ultra-long-endurance aircraft utilising expertise developed from our highly successful Zephyr programme. 

EMEA's expansion into international and adjacent markets continues to make good progress. The recently acquired Australian businesses have been integrated and are making a positive contribution to the Group. We have now recruited a new CEO, Mike Kalms, to lead this business going forward. Mike has extensive experience in the Australian defence industry.

The previously announced portfolio review of EMEA to identify any non-core activities is nearing completion. This may lead to further strategic partnering, IP licensing, new venture creation or exit from certain non-core activities.

Ventures

The Ventures businesses comprising both the retained ventures and those in our venture fund with Coller Capital are making satisfactory operational progress.  In June 2008 the official launch of the Tarsier system installed at London's Heathrow airport received widespread national media and industry coverage for this important runway monitoring system.

Financial position

The balance sheet remains strong and there have been no significant changes in the financial position of the Group since that reported as at 31 March 2008. 

Outlook

The Board remains confident about the outlook for the Group in the coming year.

About QinetiQ

QinetiQ (pronounced 'kinetic') is a leading international defence and security technology company with over 8,000 employees in EMEA (Europe, Middle East and Australasia) and more than 6,000 in North America. 

QinetiQ's vision is to be the world's leading provider of defence and security based technology solutions and services. QinetiQ's strategy is to strengthen its presence in North America, build on its powerful UK defence franchise by growing market share in technology insertion, advice and managed services, build valuable new market positions in selected EMEA markets outside the UK and take selected defence technologies into new commercial markets. 

In February 2006, QinetiQ Group plc was listed on the London Stock Exchange and joined the FTSE250 in June 2006.  In the year to 31 March 2008, QinetiQ delivered a 19 per cent increase in revenue to £1,366m, including organic growth of 8.6 per cent, and a 20 per cent increase in underlying operating profit to £127m.  Underlying earnings per share increased by 19% to 13.4p per share.  

For further information see www.QinetiQ.com 

Contacts: 

QinetiQ Investor Relations:     Adrian Colman    [phone]

QinetiQ Media Relations:        David Bishop      [phone]        

Disclaimer 

All statements other than statements of historical fact included in this document, including, without limitation, those regarding the financial condition, results, operations and businesses of QinetiQ and its strategy, plans and objectives and the markets and economies in which it operates, are forward-looking statements. Such forward-looking statements, which reflect management's assumptions made on the basis of information available to it at this time, involve known and unknown risks, uncertainties and other important factors which could cause the actual results, performance or achievements of QinetiQ or the markets and economies in which QinetiQ operates to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this document should be regarded as a profit forecast. 

 

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