AFTER a strong performance in the first half of the year, Malvern defence giant QinetiQ is predicting an 11 per cent increase in its operating profits for 2013.

Figures show the company recorded a first-half operating profit of £79m in 2012 and has forecast a profit figure of £87.8m for the same period next year.

Earnings per share are also predicted to rise from 9.4p to 9.9p.

QinetiQ chief executive Leo Quinn said: “The company has delivered a strong first-half performance in challenging markets and achieved a position of net cash on its balance sheet – an important milestone in the transformation of the group.

“We are now implementing our next strategic phase to grow QinetiQ’s sustainable earnings and build value over the medium term.

“Visibility remains much lower than usual, particularly in the US.

“Despite this uncertainty, with the benefit of the strong first-half performance, the board believes the group as a whole will perform in line with its expectations for the year, absent any change in customer requirements.”

Profit before tax in the first half of 2012 was £73.3m and is predicted to be £80m next year.