The head of advocacy group Qinetiq said global threats are “accelerating” as it reported a 21 percent rise in annual sales and shares hit a record high.
UK-based Qinetiq, like other defense companies, has been buoyed by increased government spending amid conflict in the Middle East and Ukraine, as well as tensions over Taiwan.
CEO Steve Wadey said: “The world is experiencing the highest and most rapidly evolving threat environment in a generation.”
“There is a growing threat of a broader global conflict.” He said the areas Qinetiq specializes in are being driven by countries’ attempts to “stay ahead of the threat.”
He added: “Our governments are increasing spending at reasonably significant levels, especially in our areas of strength.”
Takeoff: Qinetiq has been boosted by higher levels of government spending amid conflict in the Middle East and Ukraine, as well as tensions over Taiwan.
Qinetiq’s strategy focuses on addressing the security needs of the United Kingdom, Australia and the United States and their allies.
It specializes in high-tech areas such as robotics, lasers and cybernetics. He has played a key role in the development and testing of the UK’s new Dragonfire laser weapon.
Wadey said those countries “continue to review their evolving defense and security capabilities and are increasing spending in high-priority areas aligned with our strategy.”
Revenue for the year to the end of March rose to £1.91bn, while pre-tax profits fell 5 per cent to £183m as a result of one-off costs.
Qinetiq said it would raise its revenue forecast for the current year.
Wadey said “strong momentum and increased spending in our key markets” supported its target of £2.4bn in sales by 2027.
Actions rose 13.4 per cent, or 50.2p, to 424.4p.
