QinetiQ profit up 35 per cent

QinetiQ profit up 35 per cent

Strong US sales drive income to £46m for the half year

QinetiQ has seen a 34.5 percent jump in half-year profit from £34m to £46m thanks to strong sales in the US defence market.

Sales are 18.5 percent to £638.8m.

The company has made 11 US acquisitions in recent years and has won contracts in Australia and the Middle East. But it is to cut 400 administrative and support jobs across the UK as part of a reorganisation.

A National Audit Office report last week concluded the creation of QinetiQ from the government's Defence Evaluation and Research Agency had not resulted in best value for money for the taxpayer. A 34 per cent stake was sold to a private equity firm, The Carlyle Group, for £125m in 2003. By the time of the 2006 stock exchange flotation, the value had shot up to £1.3bn, based on a 36 per cent revenue increase and a 261 per cent rise in profit.