Qinetiq expects more double digit growth in America

Revenue at the provider of defence and security technology based services was up 14% to £727.4 million (2007: £638.8m) for the half year ended 30 September and pre-tax profit grew by 41.3% to £36.6 million (2007: £25.9m). Chief executive Graham Love (pictured) said Qinetiq’s North American operations performed well with 19% organic revenue growth, and following its reorganisation, EMEA business was better focused with a lower cost base. He went on: “We remain well placed in areas expected to be key priorities of the new US Administration and expect continued double digit growth in Qinetiq North America into the medium term. “In the UK we are both well positioned through our technology insertion expertise to respond to changing customer demand and to continue to support existing military operations. In addition our business is underpinned by a number of long term managed service contracts. “There remains a strong pipeline of acquisition opportunities and we will be selective in pursuing those that complement and grow our capabilities and provide access to new markets. We plan to undertake the disposal of certain non-core assets which will enable us to reallocate capital into quality investments whilst retaining a resilient balance sheet.”