Kainos hikes divi as revenues and profits rise

Kainos Group, a leading UK-based provider of IT, consulting and software solutions, posts statutory pre-tax profits of £6.5m for the six months to the end of September - 25% up on a year ago.

Revenues rose by 9% to £40.6m and adjusted pre-tax profits of £7.0m and adjusted EBITDA of £7.4m were up 3% and 4% respectively. The interim dividend of 1.9p per share is up 6%.

Chief executive Brendan Mooney said: "We have seen a good performance across the Group during this reporting period, with increasing levels of demand for our Digital Services and Platforms. In the six months from 1 April to 30 September 2016, we have grown overall revenue by 9%, adjusted pre-tax profit by 3%, and statutory profit by 25%.

"Underlying market conditions for Digital Services remain very positive, supporting a growing sales pipeline and a good outlook for the remaining half of the year, with increasing opportunity for growth in the UK, Ireland and mainland Europe, particularly in commercial industry sectors. In our Digital Platforms business, slow procurement in the NHS was offset by solid growth of Smart, a trend we expect will continue for the remainder of this year. We remain confident that investment in our Digital Platforms business is on target to deliver future returns.

"We are pleased with the Group's financial performance for the six months to September 2016. We are confident that trading is in line with market expectations and we see plenty of opportunities to continue to deliver growth in the future."