David BurrowsQinetiQ Group, has raised its interim dividend while maintaining its full year outlook after what it termed a "solid" half year performance saw profit and revenue rise.
For the half-year ended September 30, the aerospace and defence specialist revealed that pre-tax profit rose to £69.3m from £51.2m in 2016.
Revenue grew 8% to £392.5m from £361.8m the previous year before. On an organic basis, revenue grew 3% in what QinetiQ Chief Executive Officer Steve Wadey called as a "solid operational performance" despite "challenging" markets.
QinetiQ pointed out that the non-UK revenue share had grown from 21% of revenue the prior year to 26% in the latest period.
The company pointed to a stronger order book £2.04bn compared to £1.27bn for the same period in 2016. QinetiQ added that 89% of its financial 2018 revenues were already under contract.
Higher interim dividend
The FTSE 250 firm pushed its interim dividend per share 5% higher to 2.1p from 2p the previous year.
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"We are encouraged by the progress we have made to date", Wadey said. "Over the medium term, investment in our strategy will enable us to help customers respond to their immediate security and economic challenges, win longer term programmes and contracts, as well as increase the group's share of revenue from international markets."
The company said it was maintaining its full year expectations.
It would seem that investors have focused more on the ‘challenging markets’ than the ‘solid’ half year performance – QinetiQ’s share price had fallen over 6% in mid-morning trading to 206.55.
