QinetiQ Group plc (LON:QQ) is today hosting a seminar where we will outline our overall strategy and drivers of our sustainable growth.
| 1. | UK Intelligence – a high growth £400m revenue business that has delivered 28% CAGR[1] over the last 4 years, well positioned as a critical partner to our UK defence and intelligence customers; |
| 2. | United States – a $600m revenue disruptive mid-tier defence and intelligence business following our successful acquisition of Avantus last year, with significant growth momentum and a qualified pipeline of opportunities of over $2bn; and |
| 3. | Australia including global threat representation – an A$400m revenue specialist advisory, engineering and threat representation products and services business with significant global growth opportunities. |
The defence and security context worldwide has heightened the need for our six distinctive offerings giving significant growth potential within our >£30bn addressable market. We have delivered 9% organic revenue growth over the last four years, over twice the rate of growth in the defence budgets of our three home countries: the UK, US and Australia. Defence budgets are increasing around the world and we expect to continue delivering growth outpacing those budgets, driven by our structural alignment to high priority market segments that are increasing at faster rates.
Based upon our clear strategy and unique set of distinctive offerings, we have a robust plan to grow our company organically to £2.4bn revenue[2] at stable margins, with optionality for strategic acquisitions to reach our £3bn revenue2 ambition at 11-12% underlying operating profit margin and ROCE[3] at the upper end of the 15-20% range. We have a clear and robust capital allocation policy and are targeting to maintain a prudent balance sheet with leverage[4] under 1.5x. With capital intensity reducing we expect to see cash flow yields improve over the next few years.
The seminar will be presented at 101 Park Avenue in New York. You are invited to join us from 08:15 EDT to see a selection of our capabilities and products, as well as meet our leadership team. The presentation will start at 09:00 EDT (14:00 BST) and there will be an option to view online if you cannot join us in person. Access to the event is via registration on our website:
https://www.qinetiq.com/en/investors/investor-seminars/key-drivers-of-our-global-growth
A recording of the seminar will be available at www.QinetiQ.com/investors after the event. There will be no new material information disclosed on current trading.
[1] Compound Annual Growth Rate (excluding disposals)
[2] In FY27
[3] Return on Capital Employed
[4] Net debt to EBITDA
