NATIONAL media reports suggest Malvern-based QinetiQ could be floated on the stock exchange by the end of this year.

The science and defence firm is Malvern's largest employer with 2,500 jobs in the town.

Becoming a publicly-traded company should mean a major cash injection to QinetiQ as investors snap up shares in the business.

According to a report in a national newspaper, the Ministry of Defence, which has the controlling stake in the company, confirmed it was considering a flotation but was tight-lipped about when a decision could be expected. The paper speculated a £1bn float but said no bankers had been appointed to advise on the move.

"The position is that it has always been the plan to float the company, but the precise timing is yet to be determined," said a spokesman for the MoD.

In May 2001, the Worcester News reported that QinetiQ was due to be floated on the stock exchange in 2002, but it was postponed in January of that year because of unfavourable market conditions.

Two months ago, the firm announced that up to 500 positions may have to be cut across the country - but that as few jobs as possible would be lost.

The firm also revealed it was looking at freezing recruitment and exploring early retirement opportunities for staff because of national restructuring and changing demand.

QinetiQ was unavailable for comment this morning.