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Another year of growth at Kainos as revenue rises 29% to £302.6m


Brendan Mooney, Kainos chief executive

Brendan Mooney, Kainos chief executive

Brendan Mooney, Kainos chief executive

IT company Kainos plc has increased revenue by 29% to £302.6m in its 12th consecutive year of growth.

The only Northern Ireland business listed on the FTSE 250, it saw a 9% fall in statutory pre-tax profit to £46m over the year to March 31, 2022.

Kainos, which is based at Upper Crescent in Belfast, said it had grown across a wide range of key metrics. It specialises in IT services for the public sector, healthcare and commercial sector, including the NHS.

Kainos said: “Our very strong business performance reflects robust underlying market demand, high levels of customer engagement and the ongoing commitment of our colleagues.”

Adjusted pre-tax profits climbed 3% year on year to £58.8m, with margins moderating following increased investment and what the company said was “further normalisation of costs”.

At year end, it had £76.6m in cash, down 5% from £80.9m a year earlier.

And its workforce had hit 2,692 across 22 countries, an increase of 668 on the year before.

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Its percentage of female workers was 30%, compared to an industry average of 19%.

Four acquisitions — Cloudator, Une Consulting, Blackline Group and Planalyse — had added 153 new staff.

But employee retention had fallen from 92% to 86% against a backdrop of a global shortage of digital skills, which was increasing demand for workers. Existing customer revenue had grown by around one-third to £267.7m, while customer numbers had also increased by the same amount to 731.

Its digital services division reported revenue growth of 24% to £199.8m, and Workday Services had revenue growth of 45% to £70.9m.

Of total revenues, 41% was from the commercial sector, 37% from the public sector and the remainder from healthcare.

At 53%, commercial revenues saw the highest growth, reaching £123.8m.

Chief executive Brendan Mooney said: “Our latest business results outline the consistency of our long-term performance as we recorded our 12th consecutive year of growth in terms of people, customers, revenue and profitability.

“Over those 12 years we have helped organisations drive their digital transformation programmes and realise their ambitions. That digitalisation trend gathered further pace during the pandemic as our customers responded to the changing ways of delivering essential services to citizens, patients, customers and employees.

“That sustained demand, and the trust that our customers have placed in Kainos, has allowed our business to thrive and this year we continued to pass significant milestones.

“We now have over 2,600 colleagues and over 700 customers, whilst our revenues have exceeded £300m.”

He said the business was becoming increasingly global.

“Over two-thirds of our customers are based in Central Europe and North America, with one-third of our colleagues based in the same regions,” he added.

“Looking forward, we remain confident in our business as the demand for our services has never been higher, our reputation for delivery continues to flourish, while the scale and capability of our organisation continues to grow at pace.

Underpinning that confidence is the quality and talents of our colleagues. Their expertise, experience and energy have been the driving force behind all that we have achieved. We share their excitement about the future. The journey is just starting.”

Analysts Investec said it was upping its estimate for revenue and profit in the next financial year by 4% as the company had delivered “a strong set of results across the page with a confident outlook, more than supporting our forecast outlook”.