Monday 13 November 2023

*UKHotViewsExtra* International expansion fuels Kainos’s growth

LogoA 22% yoy increase in sales outside the UK in the first half of FY24 lifted overall revenue for the period at Kainos to £193.2m. The 8% constant currency (ccy) rise in firm-wide turnover for the six months ended 30th September was accompanied by an even better bottom line improvement. Adjusted profit before tax was up by 11% yoy (19% at ccy) to £37.9m. This drove the associated margin ahead by 100 bps against the same period in the prior FY to 20%.

There was positive news too in terms of the contracted backlog of work which was up by 6% yoy to £327m at the end of H124. Bookings for the half, however, were down by 9% against H123, albeit that period had delivered an unusually strong new business performance.

The continuing success of Kainos in its international markets was largely underpinned by the growth in the firm’s Workday related business. Revenue from the services component of this increased by 21% in H1 and the company’s Workday product sales surged by 28% yoy in the first half to bring the total turnover from both these sets of activities in the period up to £84m.

Progress in the UK, conversely, stalled during H124 with sales here were all but flat yoy at £118.5m. Domestic revenue largely derives from the firm’s Digital Services offerings. Demand for these held up well in the Public Sector, lifting company-wide turnover from this vertical by 17% yoy over H123. This was offset by an anticipated decrease in healthcare revenue (down 31% yoy) and a decline in private sector sales (down 16% yoy).

TMV recently caught up with new CEO, Russell Sloan. All TechMarketView subscription clients, including UKHotViews Premium subscribers, can read more about this company’s performance and plans here: International expansion fuels Kainos’s growth.

Posted by Duncan Aitchison at '10:48' - Tagged: results   digital   public sector  

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