QinetiQ’s pre-close statement highlighted that the company is on course to achieve full year expectations. In addition to contract wins, the statement also highlighted the key outcomes from the Single Source Regulations Office (SSRO) baseline profit rate review. While this provides a level of certainty in the short term, further development of the rate for outer years is yet to be finalised consistent with management’s guidance for a moderation of margins in EMEA Services, as modelled in our forecasts. With results due on 26 May, we expect the group to further articulate its strategic evolution to enhance customer focus and competitiveness.