Belfast Telegraph

Kainos posts a 52% surge in profits to £23.3m as revenue rise continues

Growth: Brendan Mooney
Growth: Brendan Mooney
Ryan McAleer

By Ryan McAleer

Local tech firm Kainos has reported a 56% rise in revenue to £151.3m for 2019, with pre-tax profits surging by 52% to £23.3m.

The preliminary results for the 12 months to March 31, 2019 come just three months after the IT company sealed a £7m deal to buy the former Movie House Cinema in Belfast for its new flagship headquarters.

Kainos, which provides digital transformation services and products to the public and private sector, employs 1,470 people, including 650 spread throughout nine buildings in Belfast.

The company says it will establish a new 110,000-115,000 sq ft headquarters on the site, which will allow its workforce in the city to grow to 1,000.

One of the few stock exchange-listed companies in Northern Ireland, Kainos emerged from a spin-out based in Queen's University just over 30 years ago.

The company's chief executive Brendan Mooney said the 52% rise in revenue represented the group's ninth year of consecutive growth, with the latest 12 months to March 31, 2019 the strongest annual performance in that period.

The growth saw Kainos open offices in Paris and Toronto in 2019, joining its portfolio of offices in Amsterdam, Copenhagen, Frankfurt, Gdansk and Atlanta.

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International earnings for the group rose 44% to £29m over the year, with very strong revenue growth recorded in digital services, which rose 69% to £132.6m.

The company said it continues to benefit from the UK Government's digital transformation programme.

"In digital transformation we continue to deliver significant programmes in partnership with UK government and with leading commercial and international clients," said Mr Mooney.

"In what is now a familiar pattern, our growth is fuelled by demand from both existing and new clients."

The company has a partnership with US finance and human capital software giant Workday.

"Within Workday implementation, we continue to be the European partner of choice for forward-thinking organisations that are choosing Workday's innovative Software as a Service platform to support their people and finance requirements," said the chief executive.

"Smart, our market-leading Software as a Service platform for automated testing of the Workday suite, continues to win global brands as customers, adding Home Depot, Prudential and Vassar College during the year.

"The group's pipeline of prospects continues to strengthen, and the board believes that the group is well-positioned for growth both in the short term and in the coming years."

Belfast Telegraph