Qinetiq upgrades full-year outlook, shares surge

23rd May 2024 10:02

(Sharecast News) - Defence technology firm Qinetiq surged on Thursday after lifting its full-year guidance as it reported a jump in underlying profit and revenue.

In preliminary results for the year ended 31 May, the company said underlying operating profit rose 20% to £215.2m, with revenue up 21% to £1.9bn.

The company said EMEA Services delivered "excellent" revenue growth at a stable margin, driven by strong execution of prior year orders and consistent operational delivery on its long-term contracts.

The Global Solutions business continued to be hit by "difficult" market conditions, in the US, however, resulting in lower revenue at a stable margin.

Chief executive Steve Wadey said: "I am pleased with our strong group financial results for FY24, delivered against the background of difficult market conditions in the US.

"These results have been achieved through the outstanding skills of our people, delivering highly relevant services and products critical to enduring national defence and security priorities."

Wadey said the group enters this year with strong momentum and increasing spending in its major markets, giving Qinetiq confidence to increase it guidance for FY25 to high single-digit organic revenue growth compared to FY24, at a stable operating profit margin.

At 1000 BST, the shares were up 13.7% at 425.60p.