14th Oct 2020 09:55
(Alliance News) - Shares in Kainos Group PLC rose by more than a quarter on Wednesday as the IT services provider said it expects annual results to beat market consensus.
The FTSE 250-listed stock surged 27% to 1,298.00 pence each in London on Wednesday.
A "structural shift of digital adoption" was one of the keys to "very strong" trading since its current financial year kicked off on April 1, Kainos said.
Digital Services clients have continued "to prioritise digital transformation programmes in the NHS and public sector", Kainos said, noting that it is a "trusted partner" of the UK government.
"Our Workday Practice continues to benefit from its international scale and an ability to secure new consulting contracts across all our geographies. Alongside these engagements, our specialist Workday automated testing platform, Smart, continues to support over 200 international clients and to drive new client acquisition, especially within the US market," Kainos said.
One-off cost cuts have also been implemented, including reduced recruitment and travel spend.
"We therefore expect results for the full year ending March 31, 2021 to be materially ahead of current consensus of revenue and significantly ahead of adjusted profit forecasts," Kainos predicted.
Kainos will report on its first half on November 16.
By Eric Cunha; [email protected]
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