Kainos H1 profit, revenue rise amid 'robust' demand

IT provider Kainos reported a jump in first-half profit and revenue on Monday amid "robust" market demand.

In the six months to the end of September, pre-tax profit was up 3% to £24.8m, with adjusted pre-tax profit 12% higher at £29.2m. Revenue rose 33% to £142.3m and the interim dividend was lifted 11% to 7.1p a share. Bookings grew 81% to £187.4m.

Revenues in the Digital Services segment rose 32% to £94.2m as customers continue to prioritise digital transformation programmes across the healthcare, public and commercial sectors, Kainos said.

In Workday Practice, revenue was 34% higher at £48.1m, driven by 41% growth in Workday Services to £33.6m and 22% growth in Smart product to £14.4m. Kainos said Workday Practice "continues to grow internationally and secure new consulting contracts across our operating regions".

The company said: "During the early stages of Covid-19, we successfully adapted to the changing business environment, and we remain confident that we will be able to respond to any future challenges in the wider macro-economic environment.

"In the near-term, we anticipate that demand for all our services will remain high as the pandemic has accelerated the move towards greater digitisation.

"Over the medium-term, we remain well-placed to deliver further growth, as detailed in the following sections."