Kainos FY profits, revenue rise amid 'robust' demand

22nd May 2023 07:51

(Sharecast News) - Software firm Kainos reported a jump in full-year profit and revenue on Monday amid "robust" underlying demand.

In the year to the end of March, adjusted pre-tax profit rose 15% to £67.6m, on revenue of £374.8m, up 24% on the previous year, as Kainos pointed to "strong" demand.

"The digital transformation market has been growing quickly for over a decade, initially with a focus on the replacement of ageing and inefficient legacy systems," it said.

"This driver has been augmented by organisations striving for greater agility, to allow them to react quickly to changes, whether accelerating new opportunities or, more typically, responding to challenges. As a result, our customers continue to prioritise their critical digital programmes and we continue to help them deliver these ambitious projects."

The company said its "moderated" profit growth was due mainly to increased investment in Workday Products, both in research and development and in sales and marketing.

Workday Services revenues grew 49% to £105.7m, while Workday Products revenues were up 40% to £44.7m.

Kainos said bookings rose 22% during the year to £427.8m and the company reported contracted backlog growth of 24% to £322.9m.

The total dividend per share was lifted 8% to 23.9p.