Qinetiq jumps the hurdles

Growth in three key areas helped UK-based global technology group

to deliver a strong set of annual results.

Repositioning within UK MoD programmes, expansion of the group's

presence and the successful commercialisation of defence technologies contributed to a 23 per cent increase in turnover and a 38 per cent increase in profit to £90.7m.

Qinetiq's move into alternative markets helped mitigate the losses incurred through increased competition for MoD research funding. The MoD is phasing out the amount of work that is guaranteed to Qinetiq and by 2008 all elements of the

military's research programme will be fully opened to competition.

The company said it has been able to offset the impact of this by boosting its position in the defence technology supply chain as a partner or subcontractor. It has managed to achieve a 28 per cent growth in business in this area.

Expansion in the US came on the back of three acquisitions: Apogen Technologies — an IT specialist working predominantly with the US DoD and Homeland Security department; Planning Systems — a technology firm; and Ocean Systems Engineering, all of which operate in specific growth markets, according to the UK group.