Kainos first-half profits, revenues grow

13th Nov 2023 07:29

(Sharecast News) - Kainos posted a jump in first-half profit and revenue on Monday as it hailed continued strong growth across its key business areas, but bookings and healthcare revenues fell.

In the six months to 30 September, pre-tax profit rose 12% to £30.9m, on revenue of £193.2m, up 7% on the same period a year earlier. Overall bookings fell 9% to £201.9m, however.

Revenues in Digital Services nudged down 1% to £109.2m. The company said strong public sector revenue growth of 17% was offset by the expected drop in healthcare and project scope reductions in some commercial sector engagements.

Meanwhile, the Workday Services division saw revenue growth of 18% to £57.3m and Workday Products revenues were up 28% at £26.7m.

Healthcare revenues declined by 32% to £20.5m.

Chief executive Russell Sloan said: "In the last six months, our Digital Services division has been fuelled by public sector clients continuing to invest strongly in digital transformation projects. Meanwhile, there has been strong growth in our Workday Services division where we continue to be the leading Workday partner in Europe and are enjoying a growing status in the US and Canada.

"Progress within our Workday Products division continues to gain momentum. In addition to our three established Smart Suite products, we are delighted to have launched our latest product, Employee Document Management, which already has nine international clients signed up. We are confident that we will have further opportunities to develop new, innovative products as we continue to help ambitious clients deploy Workday."

At 1050 GMT, the shares were down 19.6% at 991.00p.