The boss of defence group Qinetiq said global threats are ‘accelerating’ as it reported a 21 per cent rise in annual sales and shares hit a record high.
UK-based Qinetiq has – like other defence firms – been boosted by heightened government spending amid conflict in the Middle East and Ukraine as well as tensions over Taiwan.
Chief executive Steve Wadey said: ‘The world is experiencing the highest and most rapidly evolving threat environment for a generation.
‘There is an increasing threat of wider global conflict.’ He said the areas Qinetiq specialises in are being boosted by attempts by countries to ‘stay ahead of the threat’.
He added: ‘Our governments are increasing spending at reasonably significant levels particularly in our areas of strength.’
Take-off: Qinetiq has been boosted by heightened levels of government spending amid conflict in the Middle East and Ukraine as well as tensions over Taiwan
Qinetiq’s strategy is focused on serving the security needs of the UK, Australia and the US and their allies.
It specialises in high-tech areas such as robotics, laser and cyber. It has played a key role in developing and testing the UK’s new Dragonfire laser weapon.
Wadey said those countries ‘continue to review their evolving defence and security capabilities and are increasing spending in high-priority areas aligned with our strategy’.
Revenues for the year to the end of March rose to £1.91billion while pre-tax profits dipped 5 per cent to £183million as a result of one-off costs.
Qinetiq said it would raise its revenue forecast for the current year.
Wadey said ‘strong momentum and increasing spending in our major markets’ underpinned its target of £2.4billion in sales by 2027.
Shares rose 13.4 per cent, or 50.2p, to 424.4p.
