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Kainos bosses waive salary for six months because of coronavirus crisis

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Chief executive: Brendan Mooney

Chief executive: Brendan Mooney

Chief executive: Brendan Mooney

IT company Kainos Group plc has said its three top bosses will go without salary and bonuses for six months as it seeks to cut costs in the midst of the Covid-19 crisis.

The company has also put staff on furlough and delayed a capital investment in new offices at the former Movie House Cinema in Belfast.

In a trading update the listed company said it had introduced home-working for 1,700 staff on March 5.

It has also made changes to some services for customers, including making adjustments to the NHS app.

Kainos, led by Brendan Mooney, said it expected its customer base of government and healthcare bodies to be more robust than others during the crisis.

But it said that it was still "prudent" to manage its cost base with measures including furloughing staff, "pausing recruitment and reducing all non-essential expenditure, including deferment of the capital investment relating to the proposed new office in Belfast".

In November the company said the move to a new building on the site of the Movie House Cinema would be delayed until next year. In February 2019 the company sealed a £7m deal to buy the site for its new flagship headquarters.

Kainos said delaying that process and the other measures would result in "significant cost savings". Pay increases have also been delayed until next year while bonus schemes have been scaled back. And its chief executive, chief financial officer and senior-vice president of business development will take no salary or bonus for the next six months. Other members of the executive team are seeing a cut in their pay of 50%.

The trading update said the company expected results for the full year to be in line with market expectations as there had been "positive momentum" during the year.

Looking ahead, the company said its services were critical to over 500 customers around the globe. "Whilst this provides confidence, and despite there being only limited impact to date, the board believes that it is too early to predict the duration or the severity of the economic disruption and any impact it will have on our customers."

Belfast Telegraph