Kainos Group plc (KNOS), a leading UK-based provider of digital services and platforms, is pleased to announce its results for the year ended 31 March 2019.

Operational Highlights

  • A strong performance, representing the ninth consecutive year of growth in revenue and adjusted pre-tax profit, delivered organically.
  • Very strong sales execution continues to underpin further revenue growth.
    • Revenue growth of 56% to £151.3 million (2018: £96.7 million).
    • Adjusted pre-tax profit increased 52% to £23.3 million (2018: £15.3 million).
    • Sales orders up 31% to £171.7 million (2018: £130.7 million).
    • Contracted backlog growth of 10% to £122.2 million (2018: £110.7 million).
  • Revenue diversification continues, across a number of segments.
    • International revenues up 44% to £29.0 million (2018: £20.2 million).
    • Commercial revenues up 42% to £40.0 million (2018: £28.1 million).
    • Healthcare revenues up 42% to £21.4 million (2018: £15.0 million).
    • SaaS and software-related revenues up 6% to £16.9 million (2018: £15.9 million).
  • Very strong revenue growth in Digital Services, up 69% to £132.6 million (2018: £78.6 million).
    • Significant ongoing engagements in UK government’s digital transformation programme.
    • Further strengthening of position as leading European Workday specialist, appointed partner in France; building presence in North America and appointed partner in Canada.
  • Digital Platforms continues to make progress against key milestones.
    • Revenue growth of 3% to £18.7 million (2018: £18.1 million).
    • New clients boost Smart revenues by 45% to £11.3 million (2018: £7.8 million).
    • Research and Development expenditure of £4.3 million expensed (2018: £4.9 million).
  • Research and Development expenditure of £4.3 million expensed (2018: £4.9 million).
  • Headcount of 1,470 people in Kainos, up 26%, with ongoing recruitment activity.
  • Highly cash generative, strong underlying cash conversion of 100% (2018: 96%) and period-end net cash of £42.5 million (2018: £29.0 million).

View our animation showcasing our results.

Brendan Mooney, CEO, commented:

“In what is our ninth consecutive year of growth, I am pleased to report the strongest annual performance in that period, with significant increases in the number of people working in Kainos and in sales, revenue and adjusted pre-tax profit growth.

In Digital Transformation we continue to deliver significant programmes in partnership with UK government and with leading commercial and international clients. In what is now a familiar pattern, our growth is fuelled by demand from both existing and new clients.

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. To support our growing international client base, we have opened offices in Paris and Toronto in 2019, alongside existing offices in Amsterdam, Copenhagen, Frankfurt, Gdansk and Atlanta.

Smart, our market-leading Software as a Service (SaaS) 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.

As a Group, our healthcare-related revenues have grown strongly, however Evolve, our market-leading Electronic Medical Records (EMR) solution for the NHS continues to experience the headwinds within the NHS funding landscape.

As a Group, we remain focused on providing exceptional careers for our staff and exceptional digital products and services for our customers. 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.”

Visit our Investor Relations site to view the full Preliminary Results.