Kainos Group plc (LSE: KNOS), a leading UK-based provider of IT, consulting and software solutions announces its results for the six months ended 30 September 2018.
- Performance in line with upgraded market expectations, with on-going momentum.
- Revenue growth of 62% to £67.2 million (H1 2018: £41.4 million).
- Adjusted pre-tax profit increased 42% to £10.1m (H1 2018: £7.1 million).
- Sales orders up 42% to £90.2 million (H1 2018: £63.4m million).
- Contracted backlog growth of 29% to £125.6 million (H1 2018: £97.1 million).
- Revenue diversification continues, across a series of sectors.
- Commercial revenues up 30% to £17.6 million (H1 2018: £13.6 million).
- International revenues up 28% to £12.8 million (H1 2018: £10.0 million).
- Healthcare revenues up 67% to £11.0 million (H1 2018: £6.6 million).
- SaaS and software-related revenues up 13% to £9.9 million (H1 2018: £8.7 million).
- Very strong growth in Digital Services driven by new and existing customer demand.
- Revenue growth of 75% to £57.3 million (H1 2018: £32.7 million).
- Significant on-going engagements in UK government’s digital transformation programme.
- Further strengthening of position within Europe as leading boutique Workday partner, with 33 new deals signed (H1 2018: 16); building presence in North America.
- Digital Platforms showing progress against key milestones.
- Revenue growth of 13% to £9.9 million (H1 2018: £8.7 million).
- 139 customers on Kainos Smart (H1 2018: 103).
- Research and development expenditure of £2.2 million expensed (H1 2018: £2.6 million).
- A total of 1,324 people in Kainos (H1 2018: 1,019) up 30%, with on-going recruitment activity.
- Customer approval of Group services rated as ‘good’ or better by 90% of customers.
- Highly cash generative, strong underlying cash conversion and period-end cash of £38.8 million.
View our animation showcasing our results.
Brendan Mooney, CEO, commented: “An exceptionally strong six month performance means that we are well on the way to achieving a ninth consecutive year of growth – in terms of our people, customers, revenue and adjusted pre-tax profit.
Our Digital Services division continues to experience strong momentum, fuelled by demand from existing and new customers, both locally and internationally.
We continue to deliver major transformation programmes across UK government and for our commercial clients, where demand in the UK has resulted in the opening of new office locations in Birmingham and London.
To support the continued expansion with our Workday-related business, in Europe we continue to grow from our recently established offices in Frankfurt and Copenhagen, alongside our existing offices in Amsterdam and Gdansk. In North America we continue to expand our presence in Boston and Atlanta and we will open an office in Toronto in the next few weeks.
Our Digital Platforms division continues to make progress against key milestones. Smart, our market-leading Software as a Service (SaaS) platform for automated testing of the Workday suite continues to add global brands as customers, with over 130 international organisations now on the platform. In Evolve we continue to help our NHS customers maximise their use of Evolve, against a backdrop of a challenging funding environment for Acute Trusts.
We remain focused on providing exceptional careers for our staff and exceptional digital products and services for our customers. The Group’s pipeline of prospects continues to strengthen across all divisions and the Board believes that the Group is well-positioned for growth both in the short-term and in the coming years.”
Full report can be viewed on our investor relations site.