Kainos profit before tax set to meet expectations

15th Apr 2024 08:08

(Sharecast News) - Digital services and IT provider Kainos Group said in an update on Monday that it expected solid revenue growth and robust growth in adjusted profit before tax for the financial year just ended.

The FTSE 250 company said that despite revenues trending slightly below consensus forecasts, adjusted profit before tax was set to align with expectations.

Amid the prevailing economic climate, Kainos said its business showed resilience in the 12 months ended 31 March, particularly evident in its workday products and services segments.

The company said it had strived to maintain a balanced approach between growth, international expansion, investment in the future, and profitability, given the macroeconomic environment.

In the digital services division, Kainos reported a commendable revenue performance from its public sector team, accompanied by strong sales performance.

Healthcare revenues meanwhile showed recovery momentum post the pandemic-related peak.

However, subdued demand within commercial clients offset that performance.

As a prominent player in the workday consulting sector, the workday services division sustained healthy growth, fostering valuable relationships with international clients across significant European and North American markets.

The workday products division meanwhile reported a robust performance, driven by both established products such as Smart Test for automated testing, Smart Audit for compliance monitoring, and Smart Shield for data masking, as well as the successful launch of employee document management in September, marking the company's most successful product launch to date.

"We remain confident in our strategy; our core markets have proven to be resilient and offer substantial further growth opportunities and we are well positioned within these markets, both locally and, increasingly, internationally," the Kainos board said in its statement.

"Our confidence is reinforced by our long-term customer relationships, and the calibre of our people, who continue to excel in delivering high-impact solutions for our customers.

"In the near-term, an increased backlog, a robust pipeline and a strong balance sheet provide excellent visibility of the strength of our performance in the current financial year."

Kainos said it would announce its results for the year ended 31 March on 20 May.

Reporting by Josh White for Sharecast.com.