Kainos holds guidance after strong first half

(Sharecast News) - delivered a strong first half, with adjusted pre-tax profit rising 30% to £41.7m on revenue growth of 37% to £268.8m. The IT group also reported higher bookings and a larger contracted backlog, supporting confidence in future earnings as it held guidance for the full year.

The profit increase was driven by strong growth in Digital Services, particularly UK public sector and healthcare work, alongside continued expansion of its Workday business, where recurring revenue continued to grow strongly.

Looking ahead, Kainos said it expected further revenue and adjusted pre-tax profit growth in the second half of the fiscal year, in line with market expectations, although Digital Services growth is expected to moderate against a stronger comparative period.

The group also highlighted longer-term confidence, supported by a substantial multi-year backlog, a strong balance sheet and growing demand for digital transformation and AI-enabled solutions. Workday Products is expected to surpass £100m in annual recurring revenue during the current quarter.

Reporting by Frank Prenesti for Sharecast.com