20th May 2022 17:32
(Alliance News) - Kainos Group PLC will report robust full-year trading and a promising outlook, though analysts at Shore Capital Markets said the software company will fall short of lifting guidance.
Kainos reports annual for the year ended March 31 on Monday.
The Belfast-based firm in April tipped revenue and adjusted profit to be in line with consensus forecasts.
Analysts at Shore noted revenue is expected to rise 27% to GBP297 million, with adjusted pretax profit climbing 2% to GBP58 million.
Spending on training, recruitment and facilities kept a lid on profit growth, Shore added.
"We believe the outlook will be a reassuring one, with ongoing strength across both Digital Services and Workday and may provide scope for a more bullish market appraisal after recent share price declines," Shore said.
"Overall, we expect the outlook next week will be reassuring, although upgrades are a 'big ask' at this stage."
Kainos shares closed up 0.8% at 1,040.80 pence each in London on Friday. However, the stock has tumbled 46% so far this calendar year.
Shore said the current inflationary backdrop will need to be soothed before sentiment towards the stock improves "markedly and sustainably".
By Eric Cunha; [email protected]
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