QinetiQ, the Hampshire-based science and engineering company, says that its half-year revenues have fallen, but its underlying operating profits have grown (www.qinetiq.com).

The group reported revenues of £361.8 million for the six months to 30 September, down from £370.9 million a year earlier.

This was despite a major increase in orders, from £228.4 million to £376.8 million — largely as a result of an 11-year renewal by the MoD of the Naval Combat System Integration Support Services contract. Its underlying operating profits rose from £49.8 million to £51.9 million.

Chief executive Steve Wadey said: “We have secured a good order intake, delivered a solid operational performance and demonstrated encouraging progress in the implementation of our strategy to drive future growth.

“We are on track with transforming the company and taking a significant step forward in modernising vital test and
evaluation services in the UK.”