StockMarketWire.com - QinetiQ said it had signed an agreement with the UK Ministry of Defence to modernise 16 of the country's critical defence facilities.

The contract would generate £1.3bn of revenue until 31 March 2028, the company said.

It involved providing experimentation, test, evaluation and training support to the ministry.

The capital investment would be funded by QinetiQ and subsequently recovered from the ministry over the life of the contract.

The level and phasing of the investment was consistent with guidance given by QinetiQ at its interim results in November 2018.

'Today's agreement enhances our contribution to the safety and operational effectiveness of UK armed forces in an era when threats to our security remain acute and are changing rapidly,' chief executive Steve Wadey said.

'In line with our strategy, we are introducing innovative ways of working and making selective investments to reinforce the UK's position as a world-leader in the generation and assurance of military capability.'

'This will enable us to support the MOD's future programmes and win more work from both UK and international customers.'

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