3 The information memorandum provided to bidders indicated that the LTPA generated revenue from tasking services and non-tasking services. The revenue from tasking services was forecast to be within the range of £50 million to £60 million per annum. In evaluating Carlyle's bid, UBS Warburg worked on the basis that Carlyle's condition that the LTPA would deliver EBITDA of £30 million per year incorporated both tasking and non-tasking revenue. At this stage UBS Warburg did not know the detailed assumptions behind this condition.
4 Subsequent analysis used to agree the £30 million reduction in the value of QinetiQ compared Carlyle's conditional cash flow profile against the cash flows from non-tasking revenue only. Carlyle have said that tasking revenue was not included in their assumed EBITDA from the LTPA as this revenue was not guaranteed and therefore could not be securitised. We have seen no evidence that the significant value attributed to tasking revenue was included elsewhere in Carlyle's bid.