Spy experts predict sales boost to lift shares by 6pc
Military defence giant
Qinetiq pulled itself out of no man’s land yesterday, confirming that it is still trading in line with expectations despite shares being shelled after this year’s snap general election.
Qinetiq has fallen by nearly 20pc since the tories lost their majority in June’s election, and issued an update in July warning that the result had led to near-term uncertainty for its order numbers.
it has been particularly hit by the increased scrutiny of all Ministry of Defence contracts, and is trying to reduce its reliance on the government body.
But yesterday, it saw £76.5m added to its value after reiterating that trading since July has been in line with expectations, and left its overall performance for the financial year unchanged.
it expects to see full-year revenue growth across its global products division and European, Middle Eastern, and african services arm – albeit at a ‘modest’ rate.
the company runs services like virtual reality training for the military, stealth training for the royal Navy, and missile test ranges and test pilot training schools for the Ministry of Defence.
in the current quarter it has secured an additional £8m order from the MOD to provide it with naval combat systems expertise and a £25m order from Boeing to deliver wind tunnel testing for their commercial aircraft.
it has also won key contracts in the US and australia.
Shares rose 5.8pc, or 13.5p, to 246.9p.
the finished the week on a high note, rising 0.7pc, or 49.9, to 7372.8.
it benefited as the pound sank to a one-week low after data revealed that the British economy saw its weakest annual growth since 2013 in the second quarter of the year.
Broadcaster ITV rose after being upgraded by a key broker, and it wasn’t liberum for once. Barclays upgraded the broadcaster to ‘overweight’ and increased its target price to 200p from 190p.
it said improving advertising trends mean itV should deliver third-quarter advertising revenue at the top of its guidance.
after years of ad revenues declining across the board, some media buyers even predicted that money will flow back into television advertising from digital marketing, as younger viewers tune in to hit shows like itV’s love island.
itV’s shares rose 3.6pc, or 6p, to 174.7p, further paving the way to a safe landing for EasyJet boss Carolyn McCall when she joins the company as its new chief executive early next year.
Science investor Syncona trailed Qinetiq after one of its portfolio companies listed in the US.
Nightstar, a leading clinicalstage gene-therapy company focused on treatments for patients with rare inherited eye diseases, rose 70pc on its first day on the Nasdaq index.
With Syncona holding a 43pc stake in Nightstar, the success fed through and shares rose 6pc, or 10.7p, to an all-time high of 189p.
Redstoneconnect, which provides technology for smart buildings, fell 2pc after it denied that it had been approached by tech firm aP Systems with a bid offer.
this came despite aP Systems telling markets on thursday that it was mulling a possible share and cash offer for redstone. Shares fell 1.8pc, or 2,5p, to 139p.
Markets largely shrugged off green investment company John
Laing Group’s decision to invest £63m in a texas wind farm.
as a result of the purchase – its third in the US renewable energy sector – John laing’s investment commitments now stand at £222m, exceeding guidance of around £200m for the full year.
Shares rose 0.6pc, or 1.6p, to 285.2p.