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Kainos goes ahead with 'prudent' cuts despite 18% rise in sales

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Strategy: Brendan Mooney

Strategy: Brendan Mooney

Strategy: Brendan Mooney

Northern Ireland IT firm Kainos plc has reported an 18% increase in sales as it warned of cost-cutting to deal with the impact of the coronavirus pandemic.

The Belfast-based company reported revenue of £178.8m in the year to the end of March, while adjusted pre-tax profits were also up 9% to £25.5m.

It was the tenth year in a row of growth in revenue and adjusted pre-tax profits for Kainos.

But the plc, which has 1,715 staff, said it was prudent in light of the economic impact of coronavirus to make a number of cuts, with recruitment frozen and some staff put on furlough.

Kainos had previously announced a delay in its plan to move to new offices on the site of the former Movie House cinema on Dublin Road in Belfast.

It has already spent £7.4m on buying the site.

And its three top bosses, including chief executive Brendan Mooney, are already going without salary and bonuses.

Pay rises and bonuses are also on hold for the whole workforce.

But most of its clients are in the public sector - leaving it more insulated from the effects of lockdown.

Kainos said: "We anticipate that our customers in the public sector and in healthcare will likely be more robust than those in other sectors during this crisis.

"Nevertheless, we feel it is important to be prudent and manage the cost base, without limiting our longer-term growth prospects."

The company said it would not declare a dividend but would review when the impact of coronavirus becomes clearer.

Mr Mooney said it was "too early" to predict the duration or impact of economic disruption from the pandemic.

But he added: "We maintain confidence in our strategy and believe that we have reacted to the uncertainty of the current situation swiftly and prudently, leaving us well positioned when the economic impacts of the coronavirus on the broader economy begin to recede."

Belfast Telegraph