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Kainos Group PLC on Monday said it expects revenue to be at the top end of expectations after a strong start to the financial year. The London-based Workday partner and provider of IT services to public sector, commercial, and healthcare customers said it delivered a sequential improvement in the period from April 1 to date, building on a ‘solid’ fourth-quarter 2025 performance. As a result, Kainos now expects revenue for the financial year ending March 31 at the upper end of the consensus range of forecasts of £378.0 million to £393.4 million, which would be growth of as much as 7.1% from £367.2 million the year prior. This sales success is creating opportunities for further operating progress during the rest of the financial year, Kainos said in a trading update. The company said it is maintaining a ‘prudent’ outlook and anticipates delivering adjusted pretax profit in line with current consensus forecasts of £65.1 million to £74.7 million, growth of as much as 14% from £65.6 million the year prior. In response, shares in Kainos leapt 16% to 817.00 pence in London on Monday morning. Kainos said it’s Workday Products division has continued to deliver strong growth, passing the $100 million annual recurring revenue milestone in July. Within Digital Services, contract including with the Home Office, NHS England, and the Driver and Vehicle Standards Agency are expected to lead to meaningful increases in revenue in the second half of the financial year. Strong revenue growth in North America continued, offset by performance in the commercial sector, where activity remained muted and below prior-year levels. Kainos said the strong sales performance in its Workday Services division will result in a return to growth during the year, driven by improved results in our its European and North American markets as well as further progress in Australia, New Zealand and Mexico. Although the macro-economic environment has improved, volatility persists, Kainos said, but a robust backlog, healthy pipeline, solid balance sheet, disciplined capital allocation, and strong cash flow, supports confidence going forward. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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