Kainos Group PLC on Thursday lowered its full-year expectations, amid a challenging market environment and delays in client decision-making.
The London-based IT services company and partner of New York-listed Workday Inc said it now expects to deliver full-year revenue ‘moderately below current market consensus, with the majority of the reduction flowing through to adjusted pretax profit’.
Kainos cited a company-compiled consensus for revenue between £375.5 million and £392.0 million, and adjusted pretax profit between £75.0 million and £79.7 million. This compares to £382.4 million of revenue last year, and £77.2 million of adjusted pretax profit.
Shares in Kainos were down 12% at 750.00 pence each in London on Thursday morning.
Within its Digital Services business, Kainos reported sustained demand from public sector clients. However, delays in decision-making arose as clients waited for the UK autumn budget to provide clarity on the new government’s spending priorities.
The company had issued a warning about revenue last month as well.
Kainos said: ‘Whilst the Workday Products business continues to grow very strongly, our Digital Services and Workday Services divisions continue to be affected by the macro-economic environment and related delays in client decision-making. Considering these factors, the board has moderated its expectations.’
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