Qinetiq holds annual guidance despite near-term spending worries

(Sharecast News) - UK defence group Qinetiq said it still expected to deliver organic annual revenue growth of 3% and an operating margin of around 11% despite near-term spending uncertainty. The company also maintained earnings per share guidance of 15 - 20%.

"With an order backlog of around £5bn and a qualified pipeline of £11bn we have significant long-term visibility. Combined with our strong cash flow this allows for both investment in the business and compelling shareholder returns," the company said in a trading update on Tuesday.

Orders for the year to date were now more than £3bn, with an order backlog of around £5bn and a longer-term pipeline of £11bn.

"Recent awards include the £205m five-year extension to deliver mission critical engineering services for Typhoon, ensuring the operational readiness of our armed forces, and contracts worth £87m for our laser technology to enable future warfare," Qinetiq added.

Reporting by Frank Prenesti for Sharecast.com