Qinetiq shares tumble amid warning

2010-01-18
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Shares in defence technology firm Qinetiq have tumbled by 15% after delayed orders led to a second profit warning in as many months.

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Shares in defence technology firm Qinetiq have tumbled by 15% after delayed orders led to a second profit warning in as many months.

In November, the firm warned results may not meet City hopes because of "short-term" authorities over defence contracts.

Now it said it had seen no improvement in the conditions.

Shares plunged as much as 15% at one stage as the firm warned results for its traditionally stronger second half would now be on a par with the first six months of the year due to the delays.

Qinetiq said the US decision "has not yet clarified the position" for orders of its armour plating and sniper-detection equipment, as well as Talon robots used for purposes such as bomb disposal. The firm has supplied around 3,000 of the robots to Iraq and Afghanistan so far.

In its UK-focused Europe, Middle East and Africa (EMEA) division, the group said "political and economic" factors continued to delay spending at the end of the financial year.

Uncertainty ahead of a potential change of Government in the looming general election - as well as the UK's dire public finances - have constrained spending decisions with possible budget cuts on the way.

New chief executive Leo Quinn, who joined late last year, has launched a review of the business that will report in May.

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