QinetiQ shares plunge over 20% due to contract delays

Shares of QinetiQ, a UK defense technology firm, fell sharply by over 20% due to delays in contracts from the UK and US governments. This decline came after the company issued a profit warning, stating it is facing "tough" trading conditions and "geopolitical uncertainty." QinetiQ now expects its annual revenue growth to slow to just 2%. This change likely means the company's operating profit will be about £30 million lower compared to last year. The firm, which specializes in technology areas including robotics and cyber solutions, also reported one-off charges amounting to £180 million. Analysts suggest that these struggles are linked to a recent defense review in the UK and proposed budget cuts in the US. Despite positive trends in defense spending in some regions, political uncertainties continue to pose challenges. QinetiQ's chief executive, Steve Wadey, expressed disappointment but remains optimistic that these issues are temporary. The delays affect critical projects, including robotics and weather services for military operations.