14th Apr 2025 09:41
(Alliance News) - Kainos Group PLC on Monday reported a "solid" performance in its financial fourth quarter, with the company confident in delivering revenue in line with forecasts for the full year.
Kainos is a London-based provider of IT services to public sector, commercial and healthcare customers.
In its half year statement in November, the company "moderately reduced revenue expectations for the full year", reflecting poor macro-economic conditions and delays to UK government decision-making.
However, Kainos on Monday said it saw "improved" business in its final quarter, expecting revenue for the financial year that ended March 31 to be in line with consensus forecasts of between GBP363.3 million and GBP366.8 million. This will be down at least 4.1% financial 2024 revenue of GBP382.4 million.
Kainos shares were up 6.9% to 679.00 pence in London on Monday morning.
The company said it expects its adjusted pretax profit to also be in line with analyst forecasts which range from GBP64.1 million to GBP68.2 million. It reported adjusted pretax profit in financial 2024 of GBP77.2 million, so the financial 2025 result will be down at least 12%.
The Workday products division, which enhances system security and compliance, delivered a strong financial 2025 performance according to the firm, with Kainos noting that the division achieved annual recurring revenue in excess of GBP72 million. This will be up 19% from annual recurring revenue of GBP60.5 million the prior year.
The company noted growth in public sector revenue as well as in its healthcare and international-related revenues. However, it noted that activity within its commercial sector remained "well below" prior year levels.
Kainos expressed confidence in its strategies, and noted that it will continue to be supported by a "robust backlog and pipeline".
The company expects to report its full-year results on May 19.
By Olivia Mason-Myhill, Alliance News reporter
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