Kainos profits swell amid 'very strong' revenue growth in digital services division

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IT group Kainos reported a jump in profits as 'very strong' revenue growth in its digital services division.

For the year ended 31 March, statutory pre-tax profit increased 48% to £21.1m and revenue rose 56% to £151.3m.

Sales orders were up 31% to £171.7m for the year, with contracted backlog growing 10% to £122.2m.

The upbeat performance was led by digital services revenue growth, which grew 69% to £132.6m, driven by growth in both digital transformation and workday services.

In healthcare, while revenues had grown 'strongly,' Evolve, its Electronic Medical Records (EMR) solution for the NHS continued to experience the headwinds within the NHS funding landscape,' the company said.

The company proposed a total dividend of 9.3p a share, up 41% on last year.

'In Digital Transformation we continue to deliver significant programmes in partnership with UK government and with leading commercial and international clients,' said Brendan Mooney, CEO.

'Within Workday Implementation we continue to be the European partner of choice for forward-thinking organisations that are choosing Workday's innovative Software-as-a-Service platform to support their people and finance requirements. To support our growing international client base, we have opened offices in Paris and Toronto in 2019, alongside existing offices in Amsterdam, Copenhagen, Frankfurt, Gdansk and Atlanta.'

'As a Group, we remain focused on providing exceptional careers for our staff and exceptional digital products and services for our customers. The Group's pipeline of prospects continues to strengthen, and the Board believes that the Group is well-positioned for growth both in the short term and in the coming years.'