(Alliance News) - Kainos Group PLC on Monday reported double-digit profit growth as the company benefits from increased revenue from its Workday products.
The London-based IT service company said in the year ended March 31, statutory pretax profit rose 19% to GBP64.8 million from GBP54.3 million the year prior.
Revenue increased 2.0% to GBP382.4 million from GBP374.8 million.
Kainos declared a final dividend of 19.1 pence per share, up 19% from 16.1p.
Therefore, the total dividend paid for the year stands at 27.3p, up 14% from 23.9p.
Chief Executive Officer Russell Sloan commented: "Our latest results, record our 14th consecutive year of growth with disciplined execution in the current macro-economic climate.
"We have been focused on our operational performance, maintaining the appropriate balance between growth, international expansion, investment for the future and profitability."
Revenue from Digital Services slumped 5.0% over the year to GBP213.1 million.
However, the company delivered strong revenue growth from its Workday software related products reporting 28% revenue growth to GBP57.3 million.
In this area research and development expenditure increased by 48% while marketing spend rose 16%.
Kainos stated it is on track to achieve its target of GBP100 million annual recurring revenue from Workday products by 2026.
"In the past year, and despite the economic climate, our existing customers did more business with us than in the year before... While it is sensible to be confident about our markets... it is equally sensible to recognise that the economic environment for our customers remains uncertain," Sloan said.
In other news, Chair Tom Burnet is to complete his term following the annual general meeting on September 24. He will be succeeded by Non-Executive Director Rosaleen Blair.
Senior Independent Director Andy Malpass, will also step down from the board and be replaced internally by Non-Executive Director James Kidd.
Kainos shares were up 11% to 1,183.17 pence each in London on Monday morning.
By Elijah Dale, Alliance News reporter
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Kainos Group (KNOS)
