May 24, 2018 / 9:10 AM / 10 months ago

UK's Qinetiq confident on international growth

LONDON, May 24 (Reuters) - British defence company Qinetiq said it was confident of further growing its non-UK business, with more acquisitions possible, after posting a 5 percent rise in profit last year.

Qinetiq’s pretax profit for its last financial year came in at 109 million pounds, and it expects that to remain broadly flat in the full-year 2019, due to the impact of a headwind from a contract with Britain’s Ministry of Defence.

The company, which provides testing services to defence equipment and which has historically relied on the UK for the majority of its work, said on Thursday that its strategy to grow its international revenues to counter headwinds in its home-market was progressing.

For the 12 months ended March 31, international revenue counted for 27 percent of its total, up from 21 percent two years ago, boosted by an acquisition it made in Australia.

It also bought a Germany-based air training company, E.I.S. Aircraft Group, in April, which it said would further drive those revenues.

Qinetiq’s Chief Executive Steve Wadey said it could make more acquisitions.

“We have a pipeline, we’re looking at options,” he said in an interview.

Wadey has a long-term plan to source half of Qinetiq’s revenues from outside the UK in the next 5-10 years.

Reporting by Sarah Young, Editing by Paul Sandle

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