Last checked at 15 Apr 2024 07:00
15 April 2024
Kainos Group plc
("Kainos" or the "Company")
Year-end Trading Update
Kainos Group plc (KNOS), a UK-headquartered IT provider with expertise across three divisions - Digital Services, Workday Services, and Workday Products, today issues a trading update for the year ended 31 March 2024.
The Board expects to deliver solid growth in revenues and strong growth in adjusted PBT for the year. This will result in revenues being slightly below and adjusted PBT being in line with consensus forecasts*.
Overall, our business has continued to prove resilient in the current economic climate, particularly in our Workday Products and Services segments. We believe that given the macro-economic environment, we have maintained the appropriate balance between growth, international expansion, investment for the future and profitability.
· In Digital Services, our public sector team delivered another solid revenue performance and a strong sales performance and healthcare revenues continued to recover following the pandemic-related peak. This performance has been offset by weakness in demand within our commercial clients.
· As a leading partner in the Workday consulting sector, our Workday Services division continues to generate good growth as we engage in valuable relationships with international clients in all significant European and North American markets.
· Our Workday Products division recorded a very strong performance, both in our established products,Smart Test (for automated testing), Smart Audit (for compliance monitoring) and Smart Shield (for data masking), and in Employee Document Management, which launched in September 2023 and has been our most successful product launch to date.
We remain confident in our strategy. Our core markets have proven to be resilient and offer substantial further growth opportunities and we are well positioned within these markets, both locally and, increasingly, internationally.
Our confidence is reinforced by our long-term customer relationships, and the calibre of our people, who continue to excel in delivering high-impact solutions for our customers. As always, we are grateful for the ongoing trust of our customers and the efforts of our colleagues across the world.
In the near-term, an increased backlog, a robust pipeline and a strong balance sheet provide excellent visibility of the strength of our performance in the current financial year.
Our results for the full year ended 31 March 2024 will be announced on 20 May 2024.
* Note: Company compiled range is based on known sell side analyst estimates. The ranges are: Revenue £395.4m - £404.1m and Adjusted PBT £71.7m - £78.6m. The respective consensus figures are £400.7m and £76.3m.
ENDS
For further information, please contact:
Kainos via FTI Consulting LLP
Russell Sloan, Chief Executive Officer
Richard McCann, Chief Financial Officer
Investec Bank plc +44 20 7597 5970
Patrick Robb / Ben Griffiths
FTI Consulting LLP +44 20 3727 1000
Dwight Burden / Kwaku Aning
About Kainos Group plc
Kainos Group plc is a UK-headquartered IT provider with expertise across three divisions: Digital Services, Workday Services, and Workday Products.
· Digital Services develops and supports custom digital service platforms for public sector, commercial, and healthcare customers. Our solutions transform the delivery of these services, ensuring they are secure, accessible, and cost-effective, and provide better outcomes for users.
· Workday Services specialises in the deployment of Workday, Inc.'s Finance, HR and Planning products to leading organisations across Europe and North America. We are one of Workday's most respected partners, experienced in complex deployment and trusted by our customers to launch, test, expand, and support their Workday systems.
· Workday Products develops products that complement Workday. Our established Smart product suite, including Smart Test (for automated testing), Smart Audit (for compliance monitoring), and Smart Shield (for data masking), and the recently launched Employee Document Management, are used by more than 450 customers globally.
Our people are central to our success. We employ more than 2,900 people in 22 countries across Europe and the Americas.
We are listed on the London Stock Exchange (LSE: KNOS) and you can discover more about us at www.kainos.com.