StockMarketWire.com - Defence technology company QinetiQ reinstated its dividend, while guiding for a full-year earnings performance 'modestly ahead' of current market expectations.

QinetiQ said the average analysts' consensus for the year through March 2021 was for revenue of £1.31 billion and operating Profit £128 million.

The company said it had decided to pay an additional dividend of 4.4p per share, representing the deferred final dividend from the 2020 financial year.

The dividend would be paid on 16 November to shareholders on the register at 9 October.

'The board also intends to reinstate the progressive dividend policy for the 2021 financial year, with the interim and final dividend in line with the normal financial calendar,' the company added.

QinetiQ said it had posted a 'strong' performance in the second quarter of its financial year.

'Our focus on recovery delivered good revenue and profit performance during the second quarter resulting in us finishing close to our original targets, despite Covid-19 impact in the first quarter,' it said.

Annual order intake was expected to be ahead of the prior year, with revenue growth expected to be in the high single digits.

QinetiQ said it was maintaining its medium to long-term operating profit margin guidance of 12-13%, though it expected the short-term margin to be about 100 basis points lower, driven by Covid-19 disruption and investment spending.

'The business remains robust with encouraging new orders and a significant order backlog, good liquidity and a strong balance sheet,' chief executive Steve Wadey said.




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