Profits soar at QinetiQ

British defence technology company, QinetiQ Group, has announced a 34.5% increase in half-year underlying operating profit, fuelled by acquisitions and strength in the North American defence and security market. Underlying operating profits for the half-year to end of September was £46 million, up from £34.2 million 12 months ago.

QinetiQ also posted strong organic growth, with operating profit jumping 21.6% revenues rising 8.4%. Chief executive, Graham Lowe, said the North American defence and security market continues to provide the greatest opportunity for expansion within the Group and in the period this sector has driven strong order and turnover growth.

QinetiQ, which was formed from the greater part of the former Government agency, DERA, when it was split up in June 2001, raised its dividend by 10.8% to 1.33 pence per share.

North America revenues jumped 54.8% to £256.6 million. The company said a strategic review of its operations in Europe, the Middle East and Africa had revealed opportunities to improve annual operating profit by at least £10 million.

As a privatised company, QinetiQ is now one of the largest defence research organisations in the world and employs more than 11,400 people.

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