31st May 2016 08:24
LONDON (Alliance News) - Kainos Group PLC on Tuesday reported growth in profit in its recently ended financial year as revenue was boosted by favourable market conditions in the UK public sector and contracts with government departments.
The IT and software service provider, which listed in London last July, said its pretax profit in the year ended March 31 grew by 20% to GBP14.3 million from GBP11.8 million the year before, as revenue rose by more than a quarter to GBP76.6 million from GBP60.8 million.
Kainos said it continued to see an improvement in market conditions in the UK public sector as large central government departments and agencies initiate and progress "digitisation programmes".
The group continues to win contracts with clients such as the UK Home Office, and is assisting on a number of large-scale digitisation programmes aligned with the UK government's Digital-by-Default service standard, Kainos said.
The company added that it believes the drive for digitisation in the NHS and local government will "gather pace" in 2017.
Outside government, Kainos said it is experiencing good growth in its Evolve and WorkSmart divisions, particularly in the US and mainland Europe. Customers using its Smart SaaS automated testing product include Netflix.
Kainos will pay a final dividend of 4.2 pence, following a 1.8p interim dividend. The total dividend for the year 6.0p is down from a pre-IPO dividend for financial 2015 of 9.8p.
"We are very pleased with progress to date and excited by the opportunities ahead. We are seeing continued stability and improvement in core markets and we are encouraged by the emerging opportunities in the US. Our investment in new products is being validated by an increasing rate of customer uptake, and the feedback on the quality of our products and services remains very high," Chief Executive Brendan Mooney said in a statement.
"The group's pipeline of prospects continues to strengthen across all divisions and the board believes that the group is well-positioned for growth in the coming years," Mooney added.
Shares in Kainos were trading down 1.0% at 195.00 pence on Tuesday morning, having opened as one of the best performers on the FTSE All-Share.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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