US air force target practice in the Outer Hebrides has helped boost profits at defence technology firm QinetiQ.
Announcing a fifth consecutive year of growth and accelerated global ambitions, QinetiQ said highlights of the 12 months to March 31 included a new five-year contract, worth £19 million, to provide training events and targets for American F-15E and F-35 fighter aircraft.
The deal involves Ministry of Defence (MoD) facilities at Aberporth, in Cardigan Bay, Wales and various QinetiQ-managed MoD sites on South Uist, Benbecula and St Kilda.
Hampshire-headquartered QinetiQ has a 25-year contract – its Long Term Partnering Agreement (LTPA) – to deliver test & evaluation and training support services to the UK Armed Forces.
In its latest results statement, the firm said the US air force deal was “an important example of our LTPA investment attracting international customers to our UK ranges – the first return to the UK for the USAFE (US air force in Europe) since 2015 for their training needs.
“Initial air-to-air missile target firings at our Hebrides range in the financial year have been successful.”
We have delivered a very strong set of operational and financial results, exceeding market expectations.”
Steve Wadey, QinetiQ chief executive
QinetiQ posted underlying pre-tax profits of £149.9 million for 2020-21, up from £132.2m a year earlier. Revenue in the latest period totalled £1.28 billion, up from £1.07bn previously.
Chief executive Steve Wadey said: “Throughout this challenging year, QinetiQ has proven its commitment and focus to deliver critical defence and security capabilities for our customers around the world.
‘Strong’ results
“With the health, safety and wellbeing of our employees at the centre of our decision-making, we have delivered a very strong set of operational and financial results, exceeding market expectations.
“We have delivered a fifth consecutive year of top-line growth, growing revenue by circa 70% in the last five years.”
He added: “With an evolved strategy, strong momentum and increased ambition shaped around the changing market dynamics and needs of our customers, I am excited about this next phase of sustainable global growth, to deliver our medium to long-term targets.”
