Qinetiq shares tumbled on Thursday after the defence technology company warned that technical and supply chain issues on a large complex programme could lead to a one-off write down to its short-term guidance.
In a trading update for the second quarter, Qinetiq said it was working closely with its customer and making progress, jointly with its supply chain, towards recovery of the programme and mitigating the risk to less than £15m.
Qinetiq said its half year performance was in line with market consensus expectations. Order intake grew 25% to £700m and for the full year, it expects to deliver mid-single digit organic revenue growth at around 5% and underlying operating profit margin at the lower end of its 11-12% expected range – prior to any one-off write down.
Chief executive Steve Wadey said: “Overall the group has delivered strong operational performance in the first half of the year. We continue to deliver for our customers around the world, with EMEA Services delivering very strong performance to offset short-term weaker US performance in Global Products, due to the changing customer mission and Covid.
“We remain focused on delivering our strategy to build an integrated global defence and security company, through both organic growth and acquisitions. I am pleased with our continued strategic momentum, demonstrated by excellent order intake including a range of significant contract wins.”
At 0822 BST, the shares were down 9.2% at 298.80p.
