Last checked at 14 Oct 2020 07:00
14 October 2020
Kainos Group plc
("Kainos" or "the Company")
Trading Update
Kainos Group plc (KNOS), a leading IT provider, operating across two specialist business areas, Digital Services and its Workday Practice, today issues a trading update for the period from 1 April 2020 to date.
Driven by the structural shift of digital adoption, ongoing customer demand remains high and this has resulted in a very strong trading performance within the period. We therefore expect results for the full year ending 31 March 2021 to be materially ahead of current consensus of revenue and significantly ahead of adjusted profit forecasts.
As referenced in our September update, our Digital Services customers continue to prioritise digital transformation programmes in the NHS and Public Sector, and as a trusted partner to the UK Government, we continue to support these critical, long-term programmes.
Our Workday Practice continues to benefit from its international scale and an ability to secure new consulting contracts across all our geographies. Alongside these engagements, our specialist Workday automated testing platform, Smart, continues to support over 200 international clients and to drive new client acquisition, especially within the US market.
Throughout this Covid-19 period, our colleagues have been exceptional in their response to supporting our customers as they have adapted their organisations to operate within this changed landscape. We remain extremely grateful for the personal motivation, flexibility and hard work of our people and for the trust that our clients have placed in Kainos.
Trading through the period has benefited from several one-off efficiencies including increased utilisation and reductions in recruitment, training and travel expenditure. We view the majority of these efficiencies as non-recurring in nature and will reduce in future trading periods.
Looking forward, we remain confident in our outlook for the financial year, which is underpinned by a robust pipeline and a significant contracted backlog. Notwithstanding we are mindful of the potential medium-term impacts of further lockdown measures and the broader economic disruption caused by Covid-19.
The announcement of our results for the six months ending 30 September 2020 will be made on Monday 16 November 2020.
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 / Ben Griffiths
Canaccord Genuity +44 20 7523 4606
Simon Bridges / Emma Gabriel
FTI Consulting LLP +44 20 3727 1000
Matt Dixon / Dwight Burden / Kwaku Aning
About Kainos
Kainos Group plc is a UK-headquartered provider, across two specialist business areas, Digital Services and Workday Practice.
The Group's Digital Services include full lifecycle development and support of customised Digital Services for public sector, healthcare and commercial customers. These transformative solutions encompass a range of services from experience design to Artificial Intelligence and Cloud to deliver truly intelligent solutions that are secure, accessible and cost-effective.
The Group's Workday Practice is one of Workday's most respected partners. As a full-service partner, we are experienced in complex deployment and integrations, and the leader in Workday test automation. We're trusted by our customers to launch, test, expand and safeguard their Workday systems.
Kainos has over 1,700 people across 15 offices in Europe and North America.
Kainos is listed on the London Stock Exchange (LSE: KNOS). For further information, please visit www.kainos.com.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
The person responsible for arranging the release of this announcement on behalf of Kainos is Gillian Poole, Corporate Manager.