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Kainos Group PLC on Monday reported a fall in profit but hailed an increase in revenue and bookings, as it announced a new share buyback programme and a higher dividend. The London-based Workday partner and provider of IT services to public sector, commercial, and healthcare customers reported a 17% fall in pretax profit to £28.4 million for the six months to September 30 from £34.2 million a year earlier, as higher investment and staffing costs weighed on margins. Adjusted pretax profit was down 16% to £32.0 million from £38.2 million. Revenue rose 7.1% to £196.1 million from £183.1 million, supported by strong sales and a 27% increase in bookings to £227.9 million from £179.5 million. The contracted backlog grew by 12% to £396.9 million from £354.1 million. Cost of sales increased 12% to £102.0 million from £91.1 million, while operating expenses increased 10% to £68.3 million from £61.9 million. Kainos upped its interim dividend by 5.4% to 9.8 pence from 9.3p, and announced a new £30 million share buyback, to be executed over six months. Chief Executive Officer Brendan Mooney said the group is ‘positioned for accelerated growth in the second half,’ with all three divisions expected to increase revenue, adding that Kainos remains on track to achieve its Workday Products annual recurring revenue targets of £100 million by 2026 and £200 million by 2030. He added: ‘The UK government sees technology as central to its mission to improve the quality and efficiency of public services, while making them easier for citizens to access. The significant programme wins in the period are testament to our capabilities in the public and healthcare sectors. We also look forward to continued progress in North America, reinforced by our newly acquired Davis Pier business in Canada.’ The company maintained its outlook for profitability and adjusted pretax profit to be in line with current consensus forecasts. Kainos shares fell 0.9% to 918.50 pence each on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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