Shares of QinetiQ (LSE: QQ), theBritish multinational defence technology company, arecurrently up 8%, following publication of the companys 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%, to763.8m and111.3m respectively. Underlying pre-tax profit rose 7%, to107.8m, with underlying earnings per share increasing 10%, to 15.2p.
QinetiQ says thatthe77% 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 itsCore Air, Weapons and Maritime businesses all performed well.
However, it also says that the performance of its Global Products business continued to adversely affected bythe reduction in demand for conflict-related products caused by the on-going withdrawal ofUS military forces fromAfghanistan.
QinetiQ reportsthat its150m 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 companysprogressive dividend policy.
Commenting on the results, new CEO Steve Wadey who took up his role atQinetiQ on 27 April said:
In my first few weeks at QinetiQ Ive 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. Its 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, QinetiQs share price has risen almost 24% so far this year, versus a 7.6% gain by the FTSE All-Shareindex. 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 theFTSE All-Shares gain of 46% over the same period.
If you’re looking for somehigh-quality investment opportunities, you should definitely read The Motley Fool’s “5 Shares To Retire On” report.
It featuresfive top-quality shares— companies that have anoutstanding recordof providingreliable shareholder returns— selected by our team of expert analysts.
There’sno further obligation, sogetyourFREEcopynow.