Qinetiq, the UK defence contractor, said today it was eyeing more acquisitions in the US after seeing a surge in demand for a bomb disposal robot used by the US military in Iraq and Afghanistan.

Orders for the Talon robot range, which are used to locate and remotely disable roadside bombs, helped push the group’s organic revenues in North America up by nearly 18 per cent in the year to March 31.

Qinetiq said it continued to expect revenue growth in North America to outpace the growth in the US defence budget and that it was looking for more deals.

The group made five acquisitions on the other side of the Atlantic last year, mainly in the robotic and homeland security market, and has a war chest of more than £200 million.

Graham Love, chief executive, said: “Acquisitions remain absolutely on our agenda and we are in good position to continue to make them.

“We are not going for numbers but quality. We did five deals in the US last year and that’s a manageable run rate.”

Underlying pre-tax profits across the business, created by the controversial privatisation of the UK’s government’s defence research arm two years ago, climbed by 20 per cent to £127 million.

Total revenues rose 19 per cent to £1.37 billion, with nearly £550 million, 40 per cent, coming from North America. Mr Love said the group’s aim was to generate half its sales from the other side of the Atlantic.

Qinetiq also wants to expand into the Middle East, Scandinavia and South-East Asia after recently opening a new base in Australia.

Qinetiq’s directors pocketed more than £100 million from the float two years ago and continue to own a 3 per cent stake in the business. They will share around £840,000 from the 4.25p full-year dividend declared today.

More than £5 million will go to the Government from its 19 per cent stake in the business.

Qinetiq was embroiled in controversy at the time it listed in 2006 because of the near-£300 million profit made by Carlyle Group, the private equity group. It bought a 31 per cent stake in the business in 2002 for only £45 million.

Mr Love said he was “very tired” of critics still mentioning the episode. “It’s ancient history as far as we are concerned”.

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