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QinetiQ annual profit rise helped by one-off gains
QinetiQ's annual profit rose 5% as the defence technology contractor increased revenue and gained from more than £8m of one-off items.
Underlying operating profit in the year to the end of March rose to £122.5m from £166.3m a year earlier as revenue rose to £833m from £783.1m.
The company reported £8.7m of non-recurring trading items, including a £4.7m gain from settling a contract dispute. Excluding these gains, acquisitions and currency swings profit was "broadly flat", QinetQ said.
QinetiQ is trying to reduce its reliance on the Ministry of Defence, which is its biggest customer, as the UK seeks to cut defence spending. The company was part of the MoD before it was privatised in 2002. The company said its international business made up 27% of revenue last year, up from 21% in two years.
Steve Wadey, chief executive, said: "This has been a year of significant progress for QinetiQ. We delivered a strong operational performance in FY18, with a second successive year of organic growth and an increasing contribution from our international businesses overcoming the profit headwinds in the UK on single-sourced work."