Supplier Qinetiq confident on Ministry of Defence contract talks

MoD: Qinetiq said talks were on track over a contract shake-up

Michael Bow15 November 2018

Ministry of Defence supplier Qinetiq was upbeat on Thursday about clinching a big deal with the department worth around £100 million a year.

The group is in talks with the MoD about an amendment to the long-term partnering agreement, which provides training and facility for the military. The deal is Qinetiq’s biggest contract and is currently worth £300 million per year in sales.

Chief executive Steve Wadey said negotiations were “proceeding well” and would conclude before March.

“We are modernising how we deliver these services,” he said. “This would bring us good visibility and we would have a commitment if we secured this agreement until 2028.”

An amendment was agreed for some of the contract in December 2016 and a new deal would cover the elements that were not included in the original deal.

Half-year revenue was up to £420.3 million from £392.5 million and organic orders rose 9%.

Last month the firm bought an 85% stake in Royal Air Force training company Inzpire.