H1 trading better than expected for QinetiQ but US market still tough

DEFENCE and aerospace supplier QinetiQ Group, which has a base in Malvern, has said first half trading has been stronger than expected.

During the period its Global Products delivered the majority of two key orders for the Q-NetTM vehicle survivability product, earlier than originally planned.  It said this, together with a higher level of spares sales, more than compensated for lower sales in other major products.

UK Services were said to have continued to perform well, benefiting from a more competitive cost base and better project execution, coupled with a higher level of utilisation in certain areas to meet short term demand.  

This was partially offset by the performance of US Services, which it said continued to reflect the “considerable uncertainties” in the US defence market and the ongoing delays in contract awards.
 
It said a large number of submitted bids remained unresolved, and some of these were unlikely to be decided until the issue of sequestration is addressed.  
 
In outlook it said: “The degree of political and economic uncertainty in both our major markets means that forward visibility for the next six months is much lower than usual, particularly in the US.  

“However, the strong performance in the first half gives the board confidence that the group should at least meet its expectations for the current year, absent any material change in customer requirements.  The board’s view of the outlook beyond the current year remains unchanged.”