23rd May 2022 09:00
(Alliance News) - Kainos Group PLC reported strong annual results on Monday, with its shares surging after it recorded its twelfth consecutive year of growth.
The Belfast-based company provides digital services to the public sector, healthcare market and commercial customers. In addition, it is a partner of Pleasanton, California-based enterprise software provider Workday Inc.
Shares surged 17% in early trading in London to 1,210.00 pence each, the best FTSE 250 performer.
Chief Executive Brendan Mooney said: "Our latest business results outline the consistency of our long-term performance, as we recorded our twelfth consecutive year of growth - in terms of people, customers, revenue and profitability."
FTSE 250-listed Kainos said revenue in the year that ended March 31 climbed 29% to GBP302.6 million from GBP234.7 million. The figure topped a GBP297 million forecast from Shore Capital Markets.
Bookings were up 35% to GBP349.8 million from GBP258.8 million.
Product annual recurring revenue jumped 45% to GBP34.3 million from GBP23.6 million. Its contracted backlog ended the period at GBP259.7 million, rising from GBP206.2 million at the same point the year prior.
Pretax profit declined 8.6% to GBP46.0 million from GBP50.3 million. Adjusted pretax profit inched up 3.0% to GBP58.8 million from GBP57.1 million.
"As expected, our profit growth moderated as recruitment, training and marketing costs returned to normal levels and as we experienced increased salary costs and the increased use of contract staff. During the year we also accelerated our investment in our Smart products, both in research and development and in sales and marketing, all of which was expensed in the year," the company explained.
Operating expenses rose 37% to GBP93.6 million.
Kainos lowered its payout following the drop in profit, falling 21% to 22.2 pence from 28.2p. The firm noted the payout last year included a 6.7p special dividend.
Mooney added: "Looking forward, we remain confident in our business as the demand for our services has never been higher, our reputation for delivery continues to flourish, while the scale and capability of our organisation continues to grow at pace."
By Paul McGowan; [email protected]
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