Kainos delivers in-line results, cautious outlook
IT services group met expectations with its full-year results on Monday, with profits falling by a quarter amid tough trading conditions, as the company delivered a cautious outlook.
"While the long-term drivers in our market remain strong, and our near-term performance is supported by a healthy pipeline, a significant contracted backlog, and a strong balance sheet, we believe it is prudent to maintain our cautious stance given continued volatility in the global macroeconomic environment," Kainos said.
Revenues totalled £367.2m in the year ended 31 March, down 4% year-on-year, as strong growth in Workday Products revenue was balanced with customer delays in Digital Services and softer market conditions and increased competition in Workday Services.
Kainos, which in March announced it would cut its global workforce by 7% to "create capacity for investment", reported a statutory pre-tax profit of £48.6m, down 25% on the year before, while adjusted pre-tax profit fell 15% to £65.6m.
Nevertheless, the firm reported a year-end contracted backlog of £368.2m, up 3% over the year before.
Despite the uncertain outlook, the company announced that it would conduct an additional £30m share buyback over the next six months, following the £30m buyback completed in earlier this month.
Kainos shares were down around 4% at 782.5p by 0818 BST.
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