19 April 2023

Kainos Group plc

Year-end Trading Update

Kainos Group plc (KNOS), a UK-headquartered IT provider with expertise across three divisions - Digital Services, Workday Services, and Workday Products, today issues a trading update for the year ended 31 March 2023.

Our trading in the period has continued to be very strong across all three divisions as new and existing clients have maintained high levels of investment in digital solutions.  As a result, for the full year ended 31 March 2023, the Board expects our results to be in line with current consensus forecasts*.

·    Against a backdrop of sustained market demand, our Digital Services teams continue to deliver major transformation programmes to new and existing clients across the Public, Commercial and Healthcare sectors.

·   Our Workday Services division continues to benefit from a well-established global presence and reputation.  Now present in all significant European and North American markets, we have access to the largest markets in the fast-growing Workday consulting sector.

·    Within our Workday Products division we have three products, Smart Test (for automated testing), Smart Audit (for compliance monitoring) and Smart Shield (for data masking).  We have maintained our very strong annual recurring revenue growth trajectory as we continue to expand our international client base.

Our performance has been underpinned by our long-term customer relationships, and we remain extremely grateful to our customers for the trust that they have placed in Kainos to help them deliver their ambitious digital projects.

Our success is generated by our people, who continue to excel in delivering high-impact solutions for our customers.  Despite the increased global demand for digital talent, we continue to retain, develop and attract high quality people; we now have 2,990 colleagues based in over twenty countries (31 March 2022: 2,692 people), an increase of 11% on the prior year.

While we are cognisant of the global macroeconomic landscape, our robust pipeline, strong balance sheet and significant contracted backlog underpin our confidence in our outlook.  As a result, we believe that we are well-positioned for further growth and remain confident in our strategy.

The announcement of our results for the full year ended 31 March 2023 will be made on 22 May 2023.

* Note: Company compiled range is based on known sell side analyst estimates.  The ranges are: Revenue £351.7m - £378.0m and Adjusted PBT £66.1m - £68.0m.

Ends

For further information, please contact:

Kainos via FTI Consulting LLP

Brendan Mooney, Chief Executive Officer

Richard McCann, Chief Financial Officer

Investec Bank plc +44 20 7597 5970

Patrick Robb / Ben Griffiths

FTI Consulting LLP +44 20 3727 1000

Matt Dixon / Dwight Burden / Kwaku Aning 

About Kainos

Kainos Group plc is a UK-headquartered IT provider with expertise across three divisions - Digital Services, Workday Services, and Workday Products.  

Our Digital Services division develops and supports custom digital service platforms for public sector, commercial, and healthcare customers. Our solutions transform the delivery of these services, ensuring they are secure, accessible, and cost-effective, and provide better outcomes for users. 

Our Workday Services division specialises in the deployment of Workday Inc.'s Finance, HR and Planning products to leading organisations across Europe and North America. We are one of Workday's most respected partners, experienced in complex deployment and trusted by our customers to launch, test, expand, and support their Workday systems.  

Our Workday Products division develops products that complement Workday. Our Smart product suite, including Smart Test (for automated testing), Smart Audit (for compliance monitoring), and Smart Shield (for data masking), are used by more than 350 customers globally to safeguard their Workday systems.  

Our people are central to our success. We employ more than 2,900 people in 22 countries across Europe and the Americas. 

We are listed on the London Stock Exchange (LSE: KNOS) and you can discover more about us at www.kainos.com.