Kainos ends year as expected as Workday Products outperforms
said in an update on Monday that it expects to report full-year revenue and adjusted profit before tax in line with consensus forecasts, following a solid fourth quarter that was supported by cost discipline and steady operational performance.
The FTSE 250 software and IT services firm, which operates across Digital Services, Workday Services, and Workday Products, recorded low single-digit percentage growth in the final quarter of its financial year ended 31 March.
Management said the performance reflected a balanced approach to growth, international expansion, and investment, amid a volatile macroeconomic backdrop.
The Workday Products division continued to outperform, ending the period with annual recurring revenue above £72m.
Kainos said progress in its Built on Workday partnership left it on track to meet its initial target of £100m annual recurring revenue by 2026, with a longer-term aim of £200m by 2030.
Digital Services saw a recovery in public sector revenue in the second half, following an election-related slowdown in the UK, while healthcare revenues grew strongly.
International revenues also increased, though commercial sector activity remained well below the prior year.
In Workday Services, demand remained subdued in the second half, although the company noted early signs of recovery, particularly in international markets, including recent contract wins in Australia and New Zealand.
Kainos said it was confident in its long-term strategy, supported by structural growth drivers and opportunities arising from broader AI adoption.
The company also pointed to a strong balance sheet, robust cash flow, and a healthy pipeline as providing a solid foundation for future growth.
Full-year results were set to be published on 19 May.
At 0852 BST, shares in Kainos were up 8.97% at 692.5p.
Reporting by Josh White for Sharecast.com.
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