Kainos shares were up 17.1% to 1,208.5p in early morning trading on Monday after the company reported a 29% increase in revenue to £302.6 million from £234.7 million over the last year, representing the group’s twelfth consecutive year of growth.
The IT firm announced an adjusted pre-tax profit growth of 3% to £58.8 million compared to £57.1 million, along with a statutory pre-tax profit fall of 9% to £46 million against £50.3 million.
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Kainos highlighted a 35% growth in bookings to £349.8 million from £258.8 million year-on-year, and a period-end cash level of £76.6 million compared to £80.9 million, with cash conversion at 83% compared to 112% in 2021.
Revenue in the company’s digital services grew 24% to £199.8 million against £161.6 million, with a 45% rise in Workday Services revenue to £70.9 million compared to £49 million and a 32% uptick in Smart Test and Smart Audit product revenues to £31.9 against £24.2 million.
Meanwhile, the software group reported a customer approval rating of 98%, which remained flat year-on-year, alongside a 34% growth in customer figures to 731 compared to 546 the previous year.
“Our latest business results outline the consistency of our long-term performance, as we recorded our twelfth consecutive year of growth – in terms of people, customers, revenue and profitability,” said Kainos CEO Brendan Mooney.
“Over those twelve 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.”
“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.”
Kainos confirmed an adjusted diluted EPS rise of 4% to 38.1p from 36.8p and a total dividend per share drop of 21% to 22.2p compared to 28.2p.