QinetiQ on target with full year results
DEFENCE supplier QinetiQ, which maintains a base in Malvern despite cutbacks, has said it remains confident of delivering full year results in line with expectations.
The group said its performance owed much to its strategy of improving underlying competitiveness and cutting costs – a move which has seen the loss of hundreds of jobs from Malvern and its headquarters in Basingstoke.
However, it said the defence market remained subdued and the outlook beyond the current year remained unchanged with forward visibility lower than normal at this time.
The company has signed a new agreement with the Ministry of Defence which discharges the MoD from its accumulated liabilities for rationalisation costs incurred in previous years, the net result of which is a one-off payment to QinetiQ of £65m, which will be received after the year end.
This payment settles liabilities which otherwise would have to be recovered through revenue rates, a move which would have taken 10 years to complete.
QinetiQ has also obtained MoD agreement to changes in its Special Shareholder rights which are subject to shareholder approval at the group’s next AGM. These include removal of the M0D’s right to veto any transaction or activity and the introduction of a less onerous compliance system similar to those of QinetiQ’s peer companies.
Commenting on the proposed changes, Leo Quinn, QinetiQ CEO, said: “This is a positive step in further modernising QinetiQ and was one of the key objectives of our 24-month self-help plan.
“As the group continues to transform itself into a competitive commercial business we look forward to working alongside the MoD, our key UK customer, in the next phase of our development.”
QinetiQ’s preliminary results for the full year to March 31, 2012 will be announced on May 24.
