Like most other defence shares, Qinetiq Group (QQ.) has benefited from the pledges made by governments to increase defence spending since Russia’s invasion of Ukraine.
Yet compared with its peer group, it has been a laggard in performance terms. On average, UK defence shares have delivered a compound annual shareholder return of 22 per cent over the past five years. Qinetiq? Just 9 per cent. Only Avon Technologies (AVON), whose body armour business failed during this period, fared worse.
