Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Shares in QinetiQ shot up after the aerospace & defence group posted results ahead of expectations in its North American operation and cash generation better than forecast.
Advertising
The North American division - 45 per cent of sales - reported revenues ahead 27 per cent, of which 19 per cent was organic growth, driven by high sales of Talon robots, LAST vehicle armour kits and increased business from NASA and the security agencies. The European business saw revenues climb by 4.5 per cent.
QinetiQ said contract closure on the defence training rationalisation programme, a scheme to "rationalise" training in South Wales is now expected in 2010. The project is starting to hit delays as construction of the training facility at St Athan was supposed to start in 2009. QinetiQ has already said the project is "the single largest incremental growth opportunity" in its managed services division.
Broker Numis Securities predicts full-year pre-tax profits of £122m and EPS of 14.8p (2008: £109m and 13.4p).
QINETIQ (QQ.) |
||||
|---|---|---|---|---|
| ORD PRICE: | 179p | MARKET VALUE: | £1.18bn | |
| TOUCH: | 179-180p | 12-MONTH HIGH: | 235p | LOW: 129p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 22 | |
| NET ASSET VALUE:* | 80p | NET DEBT: | 77% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 638 | 25.9 | 3.36 | 1.33 |
| 2008 | 727 | 36.6 | 4.32 | 1.50 |
| % change | +14 | +41 | +29 | +13 |
Ex-div:21 Jan Payment:20 Feb *Includes intangible assets of £593m, or 89p a share. |
||||
Guide to the terms used in IC results tables.
More analysis of company results
QinetiQ has beaten expectations so far this year, has impressive cash generation and retains around £234m for acquisitions. The shares are good value on a forward PE ratio of 12.
Last IC View: Good Value, 216p, 16 Sep 2008.
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.10.5 running on www.investorschronicle.co.uk
