Digital transition services and software company Kainos (KNOS) continues to mine a rich growth seam across government, healthcare and in its commercial Workday practice.
Full year results to March 2021 detailed adjusted pre-tax profits soaring 117% to £57.1 million on £235 million revenues, up 28% on an organic basis. Within this, Digital Services revenues increased 32% to £162 million, driven by significant ongoing digital transformation work across the NHS and broader public sector.
Workday Practice revenues jumped 30% to £73.1 million, or 18% higher on an organic basis, as it continues to build its North America and European presence, including greater expansion of operations in Canada and Germany.
KEEPING THE CUSTOMER SATISFIED
‘It’s not rocket science,’ said chief executive Brendan Mooney, ‘you do a good job for customers, you’ll get more work.’
Mooney noted the strategy will continue to focus on growth within the public sector and healthcare, being engaged in transformation projects across UK Government and the NHS. Meanwhile, it will aim to repeat that success with commercial clients, with a bias towards financial services.
No specific guidance was provided for the current year, but house broker revenue estimates increased this morning by 10% to £267 million, although a return of discretionary costs, travel and training for example, which have been cut during the pandemic, saw analysts maintain adjusted pre-tax profit expectations at £57.7 million.
Kainos was one of Shares top picks for 2020 at 718p. The share price is almost twice that now having nudged fractionally higher to £14.17.
