11th Nov 2019 08:45
(Alliance News) - Software firm Kainos Group PLC on Monday said first half profit grew more than a third and added that it has bolstered its UK and European presence with two new acquisitions.
Belfast-based Kainos said its revenue in the six months to September 30 rose by 29% year-on-year to GBP86.9 million from GBP67.2 million.
Pretax profit was 38% higher at GBP12.0 million from GBP8.7 million last year, the FTSE 250 firm reported. On an adjusted basis, excluding "share-based payments and related costs", the profit growth was more modest at 27% year-on-year to GBP12.8 million from GBP10.1 million.
Kainos boosted its interim dividend by 25% to 3.5 pence per share, from 2.8p last year.
Revenue in its core Digital Services segment grew by 29% to GBP73.7 million from GBP57.3 million last year.
The division, which provides "full lifecycle development and support of customised digital services", has the UK government as one its largest customers. In May, Kainos said the unit could be hampered by Brexit uncertainty and a general election.
Kainos added: "This guidance remains valid, with government departments continuing with existing programmes, serving as a reminder that even in uncertain times, the business of government does not stop. Some departments are opting to defer some new programmes until they obtain greater clarity around spending plans, including those relating to the preparation for European Union exit."
Digital Platforms booked revenue growth of 34% year-on-year to GBP13.2 million from GBP9.9 million. The UK's National Health Service is a major customer of Digital Platform's Evolve Electronic Medical Record system, which allows for patient records to be completely electronic.
The company said: "The on-going funding constraints within the NHS continue to create a headwind for Evolve within the UK, although significant new projects are underway in Dublin and Gibraltar."
Kainos also said that it has acquired Formulate Ltd, a technology consultancy firm based in Worcestershire in the west Midlands, England. It has also bought the Adaptive Insights arm of Implexa GmbH.
Kainos said: "Implexa is the only accredited Adaptive Insights partner in Germany, and adds Hamburg-based software and consulting capabilities to Kainos' existing Frankfurt presence and capabilities."
Chief Executive Brendan Mooney added: "I am delighted to welcome the Formulate and Implexa teams to Kainos. The quality and unique expertise of the teams, paired with their complementary values, were integral in our decision to make these acquisitions."
Shares in the company were 3.4% higher at 528.28 pence each in London early on Monday morning.
By Eric Cunha; [email protected]
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