Qinetiq revenues ‘steady’ as it looks to end 5 years of decline

Qinetiq is on track to end five years of falling revenues, as a brighter outlook for global defence spending helps boost the FTSE 250 group.

The company, which supplies Nato, the US military and the Ministry of Defence, said in a trading update that revenues in the first three quarters of its financial year were expected to remain steady in its services division, and are “slightly ahead of this time last year” in its global products division.

The company’s North American business, which specialises in “military protection” products such as aircraft and vehicle armour, drove the improvement, though it said full-year results would still depend on the timing and shipment of key orders.

Qinetiq’s revenues have more than halved since 2011, as governments reduced military spending around the world. However, the trend has begun to reverse in recent months as geopolitical tensions rise.

In December Qinetiq bought a business which provides targets for weapons training from fellow FTSE 250 aerospace group Meggitt.