Trading as expected

QinetiQ’s AGM statement reconfirmed the outlook even in an environment that remains uncertain post the UK election. While some order deferrals in EMEA Services have undoubtedly occurred, this was to be expected and management maintains the modest revenue growth expectation for the full year. This suggests confidence that such delays are likely be recovered during the year, leading to a more heavily weighted H2. Global Products’ results are more lumpy and dependent on timing of deliveries but further growth is forecast from improved year-on-year order backlog and pipeline, enhanced by the Target Systems acquisition. With LTPA investment on track and customer-focused change embedded, QinetiQ remains focused on driving medium-term organic growth and returns.