31st Oct 2024 09:51
(Alliance News) - Kainos Group PLC on Thursday lowered its full-year expectations, amid a challenging market environment and delays in client decision-making.
The London-based IT services company and partner of New York-listed Workday Inc said it now expects to deliver full-year revenue "moderately below current market consensus, with the majority of the reduction flowing through to adjusted pretax profit".
Kainos cited a company-compiled consensus for revenue between GBP375.5 million and GBP392.0 million, and adjusted pretax profit between GBP75.0 million and GBP79.7 million. This compares to GBP382.4 million of revenue last year, and GBP77.2 million of adjusted pretax profit.
Shares in Kainos were down 12% at 750.00 pence each in London on Thursday morning.
Within its Digital Services business, Kainos reported sustained demand from public sector clients. However, delays in decision-making arose as clients waited for the UK autumn budget to provide clarity on the new government's spending priorities.
The company had issued a warning about revenue last month as well.
Kainos said: "Whilst the Workday Products business continues to grow very strongly, our Digital Services and Workday Services divisions continue to be affected by the macro-economic environment and related delays in client decision-making. Considering these factors, the board has moderated its expectations."
By Emily Parsons, Alliance News reporter
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