Qinetiq inks deal with Ministry of Defence for military communications

Security and defence contractors Qinetiq have won a three-year contract with the Ministry of Defence worth around £150m to deliver military communications.

The initial contract, with UK’s Ministry of Defence’s (MoD) Defence Digital organisation, is worth £39m, but includes options for extensions for up to two further years.

The Farnborough-based firm, which in May hiked its dividend after a surge in defence spending helped it to over £200m in profit, aims to “deliver a new communications solution for use on the front line”.

It will provide expertise in areas including programme and project management, cost engineering, approvals, network, security and safety engineering, the company added.

Qinteiq began to become a bigger beneficiary of the frenzy of gains by many defence firms earlier this year after a rise in defence spending amid rising geopolitical tensions.

The UK defence sector grew by 36 per cent between 2013 and 2023 and raked in £28bn last year, with some 164,000 jobs generated by the industry over the last decade at a growth rate of 16 per cent.

James Willis, chief executive of UK intelligence at QinetiQ, said: “In this digital era, reliable and robust communications are the bedrock of an operationally effective fighting force.

“As a trusted partner to the UK military we are delighted to continue to support development and delivery of this vitally important programme that enables our Armed Forces to defend our nation, safely and securely.”

Brigadier Jez Sharpe, Defence Digital, said: “We are delighted to be able award this contract to Team Advance who, we are confident, will deliver the expertise we need to take land tactical communications to the next stage.

“We look forward to an enduring partnership as we bring capability to the hands of our front line troops.”

Earlier this year, Qinetic said it remained “on-track to deliver high single digit organic revenue growth” when it posts its full year results next year.