Delivering enduring value for our customers and shareholders
QinetiQ Group plc
Preliminary results for year ended 31 March 2024
23 May 2024
Agenda
1 | Year in review | Steve Wadey - Group CEO |
2 | Financial results | Heather Cashin - Interim Group CFO |
3 | Strategic outlook | Steve Wadey - Group CEO |
4 | Q&A | |
3 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Year in review
Steve Wadey
Group Chief Executive Officer
Headlines
1
2
3
Delivered a further year of strong overall Group operational and financial performance in FY24
Strong momentum entering FY25 and on-track to deliver c.£2.4bn organic revenue at c.12% margin by FY27
Enhanced focus on capital allocation with optionality for investment in growth and further shareholder returns
Well positioned for sustainable shareholder value creation
5 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Financial highlights
- Record order intake at £1.74bn, with a book-to-bill1 of 1.1x
- Revenue up 21%, up 14% on an organic basis
- Profit up 20% with stable margin at 11.3%, up 16% organically
- High cash conversion at 104%, reducing leverage to 0.5x
- Strong earnings growth with underlying EPS up 11% to 29.4p
- ROCE maintained above upper end of guidance at 21%
- Dividend growth up from 5% to 7%; £100m buyback on-track
FY24 performance
Orders | Revenue | |
£1,740.4m +1% | £1,912.1m +21% | |
FY23: £1,724.1m | FY23: £1,580.7m | |
Profit2 | Cash | |
£215.2m +20% | 104% conversion | |
11.3% margin | 0.5x leverage | |
FY23: £178.9m | FY23: 106% | |
A further year of strong Group financial results
1 B2B ratio is orders won divided by revenue recognised, excluding LTPA revenue of £266m (FY23: £225m) 2 Operating profit from segments
6 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
EMEA Services
Excellent growth at stable margin
- Early delivery of mission data transformation for RAF
- First Laser Directed Energy Weapon (LDEW) firing in UK
- Air Affairs integrated with 20% increase in JATTS1 flying
Successful delivery of long-term contracts
- MSP2 contract extended by 3 years with $87m new orders
- On-trackto secure LTPA4 5-year extension to 2033
- EDP3 delivering customer benefits with £472m new orders
Strong programme execution | Pipeline of significant opportunities |
Delivering critical capabilities for enduring national defence and security priorities
1 Joint Adversarial Training and Testing Services (for Australia DOD) 2 Major Service Provider (for Australian DOD) 3 Engineering Delivery Partner (for UK MOD) 4 Long Term Partnering Agreement (for UK MOD)
7 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Global Solutions
Lower growth at stable margin
- Record production of Targets; planned CRS-I1 ramp-down
- Successful Targets certification enabling US market entry
- Modest Avantus growth in H2; funded book-to-bill of 1.2x
US platform built with Avantus integrated
- Secured $1.3bn2 of total contract awards, inc. re-competes
- $224m SDA3, $126m SCO4 & $170m TARS5 5-yr contracts
- Strategy focused on opportunities aligned to US NDS6
Delivered against background of difficult US market | US well positioned to drive synergies and future growth |
Delivering high-valuetechnology-based solutions globally
1 Common Robotic System-Individual2 Of which $571m recognised in FY24 3 Space Development Agency 4 Strategic Capabilities Office 5 Tethered Aerostat Radar System 6 National Defence Strategy
8 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Financial results
Heather Cashin
Interim Group Chief Financial Officer
FY24 Financial Highlights
Orders+1%1
£1,740.4m
FY23: £1,724.1m
Cash conversion & leverage
104% | 0.5x |
FY23: 106% | 0.8x |
Revenue+21%
£1,912.1m
FY23: £1,580.7m
EPS+11%
29.4p
FY23: 26.5p
Operating profit | +20% |
£215.2m 11.3%2
FY23: £178.9m 11.3%
ROCE | -2% pt |
21%
FY23: 23%
All measures on this page are underlying. Operating profit is the total from the operating segments. Definitions of APMs can be found in the Appendix
- 19% growth excluding 10 year £260m Maritime Strategic Capability Agreement (MSCA) contract in FY23
- Operating profit margin refers to operating profit from segments divided by revenue
10 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Record order intake with book-to-bill of 1.1x1 supporting future growth
Orders (£m)
7% growth excl. MSCA2 | 19% growth excl. MSCA | ||||
10% organic decline | 1% total growth | ||||
1,724.1 | (187.3) | 23.1 | (23.5) | 204.0 | 1,740.4 |
MSCA | |||||
£260m | |||||
FY23 | EMEA Services Global Solutions Foreign exchange | Acquisition & | FY24 |
Disposals |
- Book-to-billratio is orders won divided by revenue recognised, excluding LTPA revenue of £266m (FY23: £225m)
- Maritime Strategic Capability Agreement 10 year £260m contract in FY23
- US unfunded orders represents the value of contract awards for which funding has not yet been appropriated or authorised
Orders won (£m) | 2,318 | |||||||||||||||
1,724 | 5783 | |||||||||||||||
1,227 | 260 | MSCA | 675 | |||||||||||||
559 | ||||||||||||||||
419 | ||||||||||||||||
1,065 | ||||||||||||||||
905 | ||||||||||||||||
808 | ||||||||||||||||
FY22 | FY23 | FY24 | ||||||||||||||
Orders less than £5m | Orders greater than £5m | |||||||||||||||
Order backlog (£bn) | ||||||||||||||||
3.7 | ||||||||||||||||
2.8 | 3.1 | |||||||||||||||
0.8 | ||||||||||||||||
1.3 | ||||||||||||||||
1.5 | 1.1 | |||||||||||||||
1.8 | 1.8 | |||||||||||||||
1.3 | ||||||||||||||||
FY22 | FY23 | FY24 | ||||||||||||||
Non LTPA | LTPA | |||||||||||||||
11 Preliminary results for year ended 31 March 2024 | 23 May 2024 | ©
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
QinetiQ Group plc published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 06:06:03 UTC.