The National Audit Office offers little comfort to those retail investors who argued last year they should be allowed to participate directly in Qinetiq's initial public offering. Its report says the government could have avoided adverse publicity if it had pointed out earlier that they could buy shares in the defence technology group through their broker. If that is a victory for retail shareholders, it is Pyrrhic: most of the improvement in Qinetiq's value accrued to the taxpayer, Carlyle (and the group's management) before the IPO and the shares have rarely traded above the offer price.

andrew.hill@ft.com To comment, visit www.ft.com/lombard