Farnborough-based QinetiQ has warned that the 2015 General Election will create further uncertainty in the UK defence sector. The defence technology manufacturer gave this warning as it reported a drop in revenues and pre-tax profits for the six months to 30 September. Revenues fell to £365.6 million, from £377.4 million a year ago, while pre-tax profits fell from £67 million to £44.4 million. However, the company said it is exploring international opportunities outside its core markets of the UK and USA and is set to open an office in Ottawa, Canada.
A company spokesman said: “The Government continues to face a significant budget deficit, and a further period of fiscal austerity looks likely after the next election. MoD expenditure is not protected in the same way as spending on the NHS and international aid, but the MoD has made significant progress over the latest parliamentary term in balancing its budget.” He added that US defence spending remains on a “multi-year downturn, as it continues to wind down operations in Afghanistan.”
Chief executive Leo Quinn, who is departing to join Balfour Beatty at the end of the year, said the company is pursuing “a pipeline of international orders outside the UK and the USA, with Canada and Australia both on the agenda. QinetiQ has a portfolio that combines high-quality earnings and strong cash generation with growth opportunities in new sectors and geographies. Equally importantly, it has the right people to deliver this strategy —
a workforce committed to delivering value and proud of the customers that they serve.”