The managers and staff of QinetiQ, the state-controlled UK defence research group, stand to make tens of millions of pounds from its planned flotation.

Sir John Chisholm, chief executive, and his 9,400 colleagues have accumulated a 13% stake in the business through staff incentive schemes. The US private equity group Carlyle is in line to make a healthy return after paying £250m for a 34% stake from the UK government in December 2002.