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Kainos Group PLC on Monday struck a conservative tone after reporting lower annual profit and sales alongside a new share buyback. The London-based Workday partner and provider of IT services to public sector, commercial and healthcare customers said pretax profit fell by a quarter to £48.6 million in the year to March 31 from £64.8 million a year prior. The profit drop included a £5.2 million investment to support its extended Workday partnership. Workday is an enterprise software platform owned by US-based Workday Inc for human resources and payroll management. Kainos also took a £8.4 million restructuring charge after changes, announced in March, which saw the loss of 190 jobs. Adjusted pretax profit fell 15% to £65.6 million from £77.2 million a year ago, or by 18% to 38.3 pence per adjusted diluted share from 46.5p before. Adjusted profit margin decreased to 18% from 20%. Revenue declined 4.0% to £367.2 million from £382.4 million, or by 3% at constant currency. Digital services revenue fell by 7.5% to £197.2 million from £213.1 million, and public sector revenue declined by 9.2% to £125.5 million from £138.2 million. Overall bookings fell 10% to £382.4 million from 424.5 million, although activity accelerated in the second-half of the year to £202.9 million from £179.5 million in the first-half, Kainos said. In response, shares in Kainos fell 1.7% to 800.00 pence each in London on Monday morning. Results were in in line with revised expectations, Kainos said in a statement. ‘Our results reflect a mixed year for Kainos, with strong growth in Workday Products and in our healthcare sector, set against broader market challenges in IT services - particularly in Workday Services and in the public and commercial sectors of Digital Services,’ Chief Executive Officer Brendan Mooney said. Mooney said the economic backdrop has affected its customers, prompting some reductions or delays in technology expenditure. The chief executive said Kainos saw an ‘improved business performance in the final quarter’, recording low single-digit revenue growth. Looking ahead, Kainos said it believes ‘it is prudent to maintain our cautious stance given continued volatility in the global macroeconomic environment.’ In financial 2026, it expects continued momentum in Workday Products, ongoing recovery in Digital Services and is encouraged by signs of recovery and stronger international activity in Workday Services. Kainos maintained its final dividend at 19.1 pence per share. Its annual dividend was 4.0% higher at 28.4p from 27.3p. It also announced plans for a further share buyback of £30.0 million to be executed over the next six months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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