QinetiQ Group plc (LON:QQ), today announced results for the year ended 31 March 2019.
| Statutory results | Underlying* results | |||
| 2019 | 2018 | 2019 | 2018 | |
| Revenue | £911.1m | £833.0m | £911.1m | £833.0m |
| Operating profit | £113.8m | £141.0m | £123.9m | £122.5m |
| Profit after tax | £113.9m | £138.1m | £111.5m | £109.0m |
| Earnings per share | 20.1p | 24.4p | 19.7p | 19.3p |
| Full year dividend per share | 6.6p | 6.3p | 6.6p | 6.3p |
| Total funded order backlog1 | £3,133.6m | £2,005.4m | ||
| Total orders in the period2 | £776.4m | £587.2m | ||
| Net cash inflow from operations | £125.6m | £132.4m | £126.3m | £126.5m |
| Net cash | £188.5m | £266.8m |
- Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary.
1 2019 includes LTPA amendment signed 5 April 2019
2 Includes share of Joint Ventures, excludes LTPA contract amendments
Delivered third year of organic growth
- Orders up 32%, record £3.1bn high-quality backlog1
- Revenue up 9%, 8% on an organic basis
- Underlying operating profit up 1% including ~£7m non-recurring trading items (2018: ~£9m), excluding them up 3% on an organic basis, offsetting UK single source profit headwind
- 102% underlying cash conversion pre-capex
- Underlying EPS up 2%; 5% increase in full year dividend
Driving growth through disciplined execution of strategy
- Secured £1.3bn amendment to Long Term Partnering Agreement (LTPA) with UK MOD
- Won five competitive long-term programmes: UK, US & Canada
- Completed one acquisition and one strategic investment to grow training offering
- Grown international revenue from 21% to 30% in three years
- Engaged employees in driving and sharing benefits of growth
Priorities for FY20
- Operational performance; 74% revenue under contract (2018: 69%)
- Deliver first year of amended LTPA contract and develop growth opportunities
- Win further competitions and accelerate growth by pursuing campaigns globally
–
Drive sustainable profitable growth through continued investment
- Maintaining expectations for Group performance in FY20
Steve Wadey, Group Chief Executive Officer said:
“This has been an excellent year with strong operational performance. By improving our customer focus and competitiveness, we have delivered a third successive year of revenue growth, increased our international revenue share from 21% to 30% over the last three years, offset the UK single source profit headwind and delivered organic profit growth.
“Securing the LTPA amendment and winning five major competitive, long-term programmes demonstrates that our strategy is working, providing a platform for sustainable profitable growth.”
