QinetiQ, the firm spun out of the government's weapons-testing establishment at Porton Down, is profiting from contracts to upgrade military helicopters destined for Afghanistan, it said today.
Trading for the past three months has been in line with expectations, QinetiQ said before its annual meeting. With the Ministry of Defence on a cost-cutting drive, the company has switched its attention away from the highly technical research in which it once specialised towards providing services, mainly for military clients — including a contract to upgrade Sea King helicopters. However, it is pressing ahead with 400 job cuts.
"The UK defence market remains challenging ... The transformation of the business away from pure research to services continues," it said in a trading statement released ahead of the annual meeting.
Qinetiq was part-privatised in 2003, with US private equity firm Carlyle taking a stake, and floated three years later.