Shares of QinetiQ (LSE: QQ), the British multinational defence technology company, are currently up 8%, following publication of the company’s full year results for the year ended 31 March 2015.
Orders increased by 3%, to £613.6m, although revenue and underlying operating profit both dipped 2%, to £763.8m and £111.3m respectively. Underlying pre-tax profit rose 7%, to £107.8m, with underlying earnings per share increasing 10%, to 15.2p.
QinetiQ says that the 77% of revenue under contract at start of FY16 is consistent with the previous year, and that the remainder is supported by its “pipeline of opportunities“.
The company has reported a “strong performance” in its EMEA Services division, which saw increased orders, revenue and operating profit, and says that its Core Air, Weapons and Maritime businesses all “performed well“.
However, it also says that the performance of its Global Products business continued to adversely affected by the reduction in demand for “conflict-related products” caused by the on-going withdrawal of US military forces from Afghanistan.
QinetiQ reports that its £150m share buyback programme is now well advanced, with £128m being complete as of 15 May 2015. The board is recommending a 17% increase in the full year dividend, which it says reflects the upgrade at the half year and the company’s progressive dividend policy.
Commenting on the results, new CEO Steve Wadey — who took up his role at QinetiQ on 27 April — said:
“In my first few weeks at QinetiQ I’ve been impressed with the expertise of our people, as well as our capabilities and technologies, all of which are well matched to the dynamics in our markets. It’s a company with great potential and I look forward to working with our customers to develop and grow QinetiQ to meet their changing needs.”
At 232.6p, QinetiQ’s share price has risen almost 24% so far this year, versus a 7.6% gain by the FTSE All-Share index. And QinetiQ is surging ahead over the longer term, too, with a 98% increase in share price over the past five years, more than double the FTSE All-Share’s gain of 46% over the same period.
