Driven by the benefits of self-help programme, QinetiQ Group, the provider of technical advice to customers in the global aerospace, defence and security markets, says it is on course to deliver its expectations for the financial year ending 31 March 2012.
In its pre-close trading update today, the group reasserts the guidance (exceeding original growth expectations around 20 percent) given in the earlier trading update. Though the group has reported an improved underlying competitiveness, it still believes that market uncertainties are making it difficult to visualise outlook beyond the current year.
QinetiQ has signed an agreement with UK Ministry of Defence (MOD) Thursday, which discharges the MOD from its accumulated liabilities for rationalisation costs incurred in previous years. This will result in onetime payment to QinetiQ worth £65 million to be received after the year end.
It has also acquired an agreement from MOD regarding changes in its Special Shareholder rights which are subject to shareholder approval at the next AGM. The agreement includes removal of the MOD's right to veto any transaction or activity and the introduction of a less taxing compliance system similar to the group's competitors.
QinetiQ is scheduled to report its preliminary results for the full-year ended March 31, 2012 on May 24, 2012.