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Malvern team magic trashed: QinetiQ talks cash

Tuesday 30th November 2010
Courtesy: dailymail.co.uk

Staff in the last remaining pocket of high technology at Malvern are being dismissed by QinetiQ and the equipment auctioned off. Most of it has gone already. The last remaining piece builds InSb 200GHz+ transistors, high power GaN devices, and quantum devices capable of producing single pairs of entangled photons (in development).

As one research observer puts it: "It is a national disgrace of such enormity that the lack of response in the press is breathtaking." Though he concedes, "It is probably the way it has been whittled down over time. People have been treated really, really badly, despite QinetiQ receiving some very good offers to take the area over, it has  simply refused them."

"The point for UK PLC is that the teams that are dissipating are those that were experts at turning fundamental science into everyday technology, with all the systems engineering and project management required.

"Indeed, QinetiQ would often mess this up. However with the right leaders in place, there have been some extraordinary accomplishments. Working with universities (as in many of the proposals) is just what the UK needs right now to help boost its ailing economy; few teams in the UK are as adept at applying science & technology and those that are, tend to be very narrow.

"Just a few examples of what emerged from Malvern:

  • Radar
  • Infra-red technology (where PIR detectors originated, then uncooled detectors)
  • Liquid crystals. Every time you look at a flat display screen remember that's where the technology originated
  • "Anything on silicon", novel GaN devices, InSb transistors that work 100x as fast as what's in your PC (Intel aren't amused at the shut down!)
  • Passive mm wave security devices
  • Magnetic portal security devices

"Yet the government doesn't seem to be particularly concerned. Local MP Harriett Baldwin has been assured by QinetiQ that the site is safe, just empty of people.

"Perhaps QinetiQ thinks it can make more money by turning much of the Malvern site into a housing estate - but unfortunately there will be no market if there's a jump in the number of unemployed and a significant exodus. The county council is the only body really worried about the local economy.

"What compounds everything is that when the hightech department was a single entity (Optronics) and its reliance on MOD was only about 1/3, it returned a profit every year. Ever since it got scattered in a re-organisation, it's gone downhill with the bureaucracy involved in bidding for work reportedly quite extraordinary."

What QinetiQ reports

 

  • QinetiQ latest release in November shows revenues up 7%, driven by strong sales of survivability products.
  • Balance sheet shows very strong cash generation; net debt at 30 September 2010: £327m (1H FY10: £452.3m)
  • Significant progress in first 6 of  24 month self-help programme:
  • Simplified structure implemented: US Services, UK Services and Global Products;
  • Action to eliminate loss-making, non-core activities; $60m cash sale of QinetiQ's US Security &  Intelligence Solution business.
  • Leadership teams upgraded
  • UK employee terms and conditions renegotiated;
  • Restructuring programme on track.

“Our reduction in the Group’s debt is a yardstick of our progress in building the right foundation for the Group going forward," says CEO Leo Quin (right). "Our goal is to become more competitive and to use our deep relationships with customers to help them find solutions to the challenges they face.

“Work continues on streamlining the Group structure and processes, building up the leadership team and embedding the changes we have put in place."

High time the UK had a hightech czar.

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