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Cuts to defence spending hit Qinetiq’s revenue and profits
QINETIQ, the former research arm of the Ministry of Defence, yesterday posted a decline in full-year revenue and profit, due to government spending cuts in the US and Europe.
The FTSE 250-listed defence and technology company reported revenue of £1.19bn, down from £1.33bn the previous year, while pre-tax profit dropped to £119.4m from £152.1m.
But Qinetiq is focusing on streamlining the firm and attracting new commercial customers to make up for a decline in military spending.
It said it is on track to meet full-year targets and increased its dividend by 21 per cent. Chief executive Leo Quinn said Qinetiq is “leaner, debt-free and focused on those capabilities most needed by our customers following the recent reset in defence budgets”.