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Update

Qinetiq FY order intake “very strong”

Qinetiq released a bullish Q4 Trading Update last week in which it said Full Year order intake has been “very strong at more than £1.2bn”…

The defence tech company expects to deliver c.5% revenue growth on an organic basis with underlying operating profit of at least £135m.

Qinetiq’s operating cash flow was “excellent”, and the balance sheet remained very strong with net cash at 31 March 2022 of c.£225m.

“We retain our medium to long-term guidance: we are targeting mid-single digit percentage compound annual organic revenue growth over the next five years, with strategic acquisitions further enhancing this growth” read the update.

“We are targeting a long-term operating profit margin of 12-13%, although in the short-term we anticipate margins being c.100bps lower, driven by inflationary pressures and continued investment” it continued.

The shares have continued their upward trajectory and price momentum is accelerating. We know have a strong emerging uptrend developing on the price chart signified by a short-term ascending trendline (gold dotted line on chart below).

Qinetiq will announce their Preliminary Results on 19^th May 2022.

QQ. Daily Candle Chart

Unilever rally despite Indonesian ban on palm oil exports

Our position in Unilever is off to a strong start despite Indonesia announcing that it will effectively ban palm oil exports from 28^th April…

Indonesian President, Joko Widodo on Friday announced a halt of shipments of cooking oil and its raw material to control soaring domestic prices.

The measure could further inflame global food inflation that soared to a record high following Russia’s invasion of Ukraine, raise costs for packaged food producers and force governments to choose between using vegetable oils in food or for biofuel.

Despite this newsflow, Unilever has continued to rally from long-term support as buyers step in ahead of tomorrow’s Q1 2022 Trading Update.

ULVR Daily Candle Chart