Kainos FY revenues seen at upper end of consensus

(Sharecast News) - IT provider Kainos Group said on Monday that it now anticipates full-year revenues to be at the upper end of consensus forecasts, driven by "stronger sales" in the period. Kainos said revenues would be at the higher end of revenue estimates of £378.0m to £393.4m, while adjusted pre-tax profits were expected to be in line with current consensus forecasts of between £65.1m and £74.7m.

The FTSE 250-listed firm said its "sales success" was creating opportunities for further operating progress during the rest of the financial year, and noted that with new projects mobilising across all three divisions, it was recruiting additional staff, as well as increasing its short-term use of contractors to support both growth and its strong pipeline.

Kainos' Workday Products division continued to deliver "strong growth", passing the $100m annual recurring revenue milestone in July and returning it to growth, while its Digital Services arm secured "several significant programmes" in both healthcare and the public sector, including contracts in the Home Office, NHS England, and the Driver and Vehicle Standards Agency.

"Although the macroeconomic environment has improved, volatility persists, and we continue to balance growth, international expansion, investment and profitability against this backdrop," said Kainos.

"Kainos continues to operate in markets with clear long-term structural drivers, including the emerging opportunities from wider AI adoption. We remain confident in our strategy to capture and deliver on these opportunities. Backed by a robust backlog, healthy pipeline, solid balance sheet, disciplined capital allocation, and strong cash flow, we have a firm foundation from which to drive long-term shareholder value."

Reporting by Iain Gilbert at Sharecast.com