Kainos Group Regulatory News (KNOS)

THE INFORMATION WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONTAIN INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ‎UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE, THIS INFORMATION IS ‎CONSIDERED TO BE IN THE PUBLIC DOMAIN.

19 May 2025

Kainos Group plc

("Kainos" or the "Company") 

Share Buyback Programme

Kainos Group plc, a UK-headquartered IT provider with expertise across three divisions - Digital Services, Workday Services and Workday Products, announces that, from today, it has appointed Investec Bank plc ("Investec") to manage a non-discretionary share buyback programme to purchase ordinary shares of £0.005 each in the capital of the Company ("Shares") within certain pre-set parameters, for up to a maximum amount of £30 million (excluding expenses) (the "Programme").

The Company has authorised the Programme to continue until the earlier of: (i) the date on which the maximum aggregate consideration payable by the Company has been reached and (ii) 18 November 2025.

The sole purpose of the Programme is to reduce the Company's share capital, and any Shares purchased for this purpose will be cancelled.

Rationale for Buyback Programme

As detailed in our full year results published this morning, Kainos has a strong unlevered balance sheet and continues to generate significant operating cash flow, with a net cash and treasury deposit balance of £133.7 million as of 31 March 2025.

The Programme is consistent with the Company's capital allocation policy, to enhance the growth of the business, both organically and through acquisition, and to reward shareholders through growth in earnings alongside our progressive dividend policy, while retaining a robust capital base. Where there is surplus cash over and above that needed to fund organic and inorganic growth, the Board will consider additional one-off returns of capital to shareholders.

In the context of the strong balance sheet position, the Board believes a share buyback to be an attractive use of capital to drive shareholder value alongside the significant ongoing organic investment.

The Board will continue to keep the capital allocation policy and further distributions to shareholders under review, with consideration of future buybacks and other potential uses of capital that may drive value for shareholders over the medium term.

The Programme will be conducted by the Company in accordance with and under the terms of the general authority granted to the Board by the Company's shareholders at the Company's annual general meeting on 24 September 2024 (the "General Authority") and, in line with the General Authority, will not exceed 12,584,171 Shares (3,993,382 Shares having already been purchased pursuant to the buyback launched in November 2024 that was completed on 9 May 2025). After the expiry of the General Authority at the conclusion of the Company's 2025 annual general meeting, the Programme will be conducted in accordance with any new authority conferred by the Company's shareholders at the 2025 annual general meeting.

The Programme will be executed in accordance with Chapter 9 of the UK Listing Rules and the terms of the General Authority. The Programme will also be conducted within the parameters of the UK version of the Market Abuse Regulation (Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Investec will act as principal for the simultaneous on-sale of such shares to the Company and will make its trading decisions concerning the timing of the purchases of the Shares independently of the Company. Any purchase of Shares made in relation to the Programme will be carried out on the London Stock Exchange.

The Company will make further announcements following the completion of any purchases. There is no guarantee that the Programme will be implemented in full or that any Shares will be purchased by the Company.

The person responsible for arranging the release of this announcement on behalf of Kainos is Gráinne Burns, Company Secretary.

Ends

For further information, please contact:

Kainos via FTI Consulting LLP

Brendan Mooney, Chief Executive Officer

Richard McCann, Chief Financial Officer

Investec Bank plc +44 20 7597 5970

Patrick Robb / Nick Prowting / Ben Griffiths

FTI Consulting LLP +44 20 3727 1000

Dwight Burden / Kwaku Aning

About Kainos Group plc

Kainos Group plc is a UK-headquartered provider of sophisticated IT services to major public sector, commercial and healthcare customers. Our expertise spans three divisions: Digital Services, Workday Services, and Workday Products.

· Digital Services: We develop and support custom digital service platforms that transform service delivery in public, commercial, and healthcare sectors. Our solutions ensure security, accessibility, cost-effectiveness, and improved user outcomes.

· Workday Services: Specialising in deploying Workday, Inc.'s Finance, HR, and Planning products, we are a respected partner in Europe and North America. Experienced in complex deployments, we are trusted to launch, test, expand, and support Workday systems.

· Workday Products: Our established product suite, incorporating Smart Test, Smart Audit, and Smart Shield, complements Workday by enhancing system security and compliance. Our Employee Document Management product, launched in October 2023, improves document generation and storage within Workday while supporting an organisation's global compliance requirements. Over 500 global customers use one or more of our products.

Our people are central to our success. We employ more than 3,000 people in 20 countries across Europe, Asia and the Americas.

We are listed on the London Stock Exchange (LSE: KNOS) and you can discover more about us at www.kainos.com.