LONDON The QinetiQ Group IPO is being planned for February and should raise £150 million for the company as well funds for it main share holders, the U.K. Secretary of State for Defence (the MOD) and The Carlyle Group.
The move had been the subject of speculation for a number of months.
The company says it will use the funds raised to grow its business both organically and through appropriate acquisitions. In the short term, QinetiQ intends to use part of the proceeds to make an additional one-off payment of approximately £45 million to reduce the deficit in its defined benefit pension scheme, and the balance to reduce the amounts drawn under its revolving bank facility.
Sir John Chisholm, Chairman of QinetiQ said, “QinetiQ has transformed itself from a UK R&D operation into the international defence and security technology business we have today. We are well on the way to delivering our founding ambitions of linking defence and civil technologies to create a successful, vibrant and growing organisation meeting the needs of governments and companies in facing the challenges of today's fast moving world. The IPO will mark a watershed in our development and provide us with the tools to continue to implement our ambitious goals.”
QinetiQ's total turnover under U.K. GAAP has increased from £774.9 million in FY 2003 to £795.4 million in FY 2004 and £872.4 million in FY 2005 (31 March year end).
QinetiQ's total operating profit under UK GAAP before exceptional items, goodwill amortisation and impairment has increased from £35.7 million in FY 2003 to £54.1 million in FY 2004 and £69.3 million in FY 2005.