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(Sharecast News) - IT provider Kainos said on Monday that full-year revenue was set to be ahead of consensus expectations following a continued strong performance in the second half of the year.
In an update for the year to the end of March, the company said full-year adjusted pre-tax profit would be in line with a forecast of 66.4m. Analysts are expecting FY revenue of 406.5m.
Kainos hailed double-digit percentage revenue growth, a "very strong" sales performance and record backlog levels.
The company grew its workforce by 21% to 3,475 people, including 259 contractors and third-party consultants.
"This strong recruitment reflects the depth and visibility of the order pipeline, and the use of external contractors and consultants is a considered response to increased demand, despite the short-term impact on margins," it said.
The Workday Products division achieved annual recurring revenue exceeding 89m at year end and Kainos said it was on track to meet its 100m ARR goal during calendar year 2026 and its 200m target by 2030.
Digital Services grew "very strongly", Kainos said, securing significant healthcare and public sector contracts, including programmes with NHS England and the Driver and Vehicle Standards Agency.
Meanwhile, Workday Services saw a return to growth in the first half and further progress in the second half, particularly in the Americas and APAC regions.
The company said: "Our balanced approach enables Kainos to navigate external uncertainties while sustaining momentum across divisions and markets, with margin improvement anticipated in H2 FY27 as the use of contractors reduces. While the macroeconomic environment remains volatile, Kainos operates in markets driven by clear structural trends, and we remain confident of delivering on our strategy.
"This confidence is based on our strong financial position: an excellent backlog and solid pipeline, a strong, debt-free balance sheet, disciplined capital allocation and robust cash generation. Together with favourable market trends, strategic capabilities and operational strengths, this provides a solid foundation for sustained growth and long-term shareholder value."
At 0905 BST, the shares were up 0.5% at 882p.
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