Kainos Group Regulatory News (KNOS)

16 April 2018

Kainos Group plc

("Kainos" or "the Company")

Trading Update

Kainos Group plc, a leading provider of Digital Services and Platforms, today issues a trading update for the year ended 31 March 2018. Trading in the period has continued in line with market expectations and the Company remains well positioned in its core markets.

Growth in Digital Services has been particularly strong, driven by both Digital Transformation and Workday, and with continued momentum across government and healthcare clients. Our international client base has also continued to expand, supported by the Group's broadened European footprint and growing reputation in the commercial sector following sales investment. A very strong sales performance has generated a comparable increase in contracted backlog.

Digital Platforms has performed in line with expectations, mainly driven by the Kainos Smart platform, where we have continued to acquire new clients successfully. The constrained funding in the UK NHS continues to impact short term growth of the Kainos Evolve platforms, although sales activity levels are showing signs of improvement that are consistent with our expectations.

Kainos has a robust balance sheet with no debt and strong cash generation. The Company has a growing level of recurring revenue and has a solid pipeline.

Recruitment remains strong, with over 194 people joining Kainos since 1 April 2017, bringing the total number of employees and contractors worldwide to 1,169 at the end of March 2018.

Kainos will announce results for the year ended 31 March 2018 on Tuesday 29 May 2018.

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About Kainos

Kainos Group plc is a UK-based provider of Digital Services and Digital Platforms.

The Group's Digital Services include full lifecycle development and support of customised Digital Services for government and commercial customers. Kainos is also the largest boutique partner for Workday Inc. ('Workday') in Europe, responsible for implementing Workday's innovative Software- as-a-Service (SaaS) platform for enterprise customers.

The Group's Digital Platforms comprise specialised digital products in the mobile healthcare and automated testing arenas. Evolve Electronic Medical Records ('EMR') is the market leading product for the digitisation of patient notes in the Acute sector of the NHS; Evolve Integrated Care ('IC') is a SaaS-based integrated care platform for the NHS and international healthcare providers; and Smart is an automated testing platform for Workday customers.

Kainos employs approximately 1,200 staff and contractors across eleven offices in Europe and the USA, working interchangeably across its Services and Platforms businesses.

Kainos is listed on the London Stock Exchange (KNOS). For further information, please visit www.kainos.com.