Orders maintained at QinetiQ as defence group updates on Q2

Defence and security contractor QinetiQ said it had delivered a "good operational and financial performance" in its second quarter (to September 30) with order intake maintained.

Reflecting the "global threat environment" and increasing spend over the long-term by customers in its core markets, the three months saw a number of strategic orders secured, said the firm, which has a number of locations in the South East.

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Included in these was a three-year contract, worth up to £150 million, to help deliver the next generation of tactical military communications for the British Army, as well as commencing the initial phase of the DragonFire laser directed energy weapon (LDEW) Minimum Deployable Capability programme for the Royal Navy.

Another was a ten-year €284m Aerial Training Services contract with the German Armed Forces Procurement Office - the largest and longest contract yet awarded to QinetiQ's global threat representation business.

QinetiQ said it remained on-track to deliver high single digit organic revenue growth at stable margin with high cash conversion - in line with its guidance.

Steve Wadey, the group's CEO, said: "We have delivered a good operational and financial performance in the quarter, and our services and products continue to be of high relevance and significant value to our customers in a heightened threat environment.

"Against a backdrop of political transition in our core markets, I am pleased that order intake momentum has been maintained, which underpins our long-term sustainable growth."

The firm's £100m share buyback programme is on track to be completed this financial year with £62m shares purchased by the end of the second quarter, it added.