Qinetiq Group's (LON:QQ) pre-close statement continued to show the group’s confidence in the outlook and highlighted that despite fears of UK defense slowdown, order intake was strong in Q2 and revenue under contract is as expected at this stage. With growth in Global Products also confirmed, supported by a combination of organic growth and the contribution from the Target Systems acquisition, both divisions are set to advance. We are therefore maintaining our forecasts and are encouraged by the progress in the group’s strategic objectives, which have seen orders placed across the core UK business, as well as home markets in the US and Australia.
QinetiQ’s statement confirmed the outlook, with progress and orders received in both the EMEA Services and Global Products divisions supporting expectations. Despite external concerns regarding UK defence spending, we view it as positive that the group saw stronger order intake in Q2, building on the positive starting position of the business and supporting expected revenue under contract for the year, a better indicator of in-year performance. Likewise, with Global Products trading as expected and the full impact of the Target Systems acquisition set to come through, growth is conformed in both divisions.
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