Northern Ireland software company Kainos has issued a strong trading update for the five months from April 2023 to date, with the company forecasting a 13 per cent growth in revenue by the end of the financial year.
Kainos Group plc, established in 1986 as a spin-out company from Queen’s University Belfast, provides digital technology services and platforms to customers that include the National Health Service (NHS), and employs more than 2,900 people in 22 countries.
Kainos said that despite an “uncertain trading environment”, customers continue to invest digital projects and “trading in the first half has been good”.
The group said its board expects results for the full year ending March 31st, 2024 will be “in line with current consensus forecasts”, with revenues reaching £418.2 million – £434.2 million (€487.8 million – €506.5 million), and adjusted profit before tax (PBT) of £72.6 million-£78.1 million.
A trading update issued by Davy noted that at the midpoints, this represents about 13 per cent year on year growth and a PBT margin of about 17.7 per cent.
Davy highlighted that the revenue growth and profit margin forecasts are “some way off” the highs of the financial years 2023, 2022 and 2021.
Kainos said that its digital services division delivered a “solid performance” with sustained demand from public sector clients.
The group said that its fast-growing Workday services division “continues to generate strong growth” with international clients in European and North American markets, while the Workday products division is also delivering “very strong growth” with an expanding global client base.
Kainos said it is “well positioned for further growth” with a “robust pipeline, strong balance sheet, and significant contracted backlog” to support the company’s confidence about the future.
Kainos is expected to publish results for the first six months of its financial year on November 13th.
