REG - Kainos Group plc - Share Buyback Programme

KainosAnnouncement

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RNS Number : 0970J  Kainos Group plc  19 May 2025

THE INFORMATION WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONTAIN
INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO
596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED. ‎UPON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
‎CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

 

19 May 2025

 
 

Kainos Group plc

("Kainos" or the "Company")

 

Share Buyback Programme

Kainos Group plc, a UK-headquartered IT provider with expertise across three
divisions - Digital Services, Workday Services and Workday Products, announces
that, from today, it has appointed Investec Bank plc ("Investec") to manage a
non-discretionary share buyback programme to purchase ordinary shares
of £0.005 each in the capital of the Company ("Shares") within certain
pre-set parameters, for up to a maximum amount of £30 million (excluding
expenses) (the "Programme").

The Company has authorised the Programme to continue until the earlier
of: (i) the date on which the maximum aggregate consideration payable by the
Company has been reached and (ii) 18 November 2025.

The sole purpose of the Programme is to reduce the Company's share capital,
and any Shares purchased for this purpose will be cancelled.

Rationale for Buyback Programme

As detailed in our full year results published this morning, Kainos has a
strong unlevered balance sheet and continues to generate significant operating
cash flow, with a net cash and treasury deposit balance of £133.7 million as
of 31 March 2025.

The Programme is consistent with the Company's capital allocation policy, to
enhance the growth of the business, both organically and through acquisition,
and to reward shareholders through growth in earnings alongside our
progressive dividend policy, while retaining a robust capital base. Where
there is surplus cash over and above that needed to fund organic and inorganic
growth, the Board will consider additional one-off returns of capital to
shareholders.

 

In the context of the strong balance sheet position, the Board believes a
share buyback to be an attractive use of capital to drive shareholder value
alongside the significant ongoing organic investment.

The Board will continue to keep the capital allocation policy and further
distributions to shareholders under review, with consideration of future
buybacks and other potential uses of capital that may drive value for
shareholders over the medium term.

The Programme will be conducted by the Company in accordance with and under
the terms of the general authority granted to the Board by the Company's
shareholders at the Company's annual general meeting on 24 September 2024 (the
"General Authority") and, in line with the General Authority, will not exceed
12,584,171 Shares (3,993,382 Shares having already been purchased pursuant to
the buyback launched in November 2024 that was completed on 9 May 2025). After
the expiry of the General Authority at the conclusion of the Company's 2025
annual general meeting, the Programme will be conducted in accordance with any
new authority conferred by the Company's shareholders at the 2025 annual
general meeting.

The Programme will be executed in accordance with Chapter 9 of the UK Listing
Rules and the terms of the General Authority. The Programme will also be
conducted within the parameters of the UK version of the Market Abuse
Regulation (Regulation (EU) No 596/2014) as incorporated into UK domestic
law by virtue of the European Union (Withdrawal) Act 2018. Investec will act
as principal for the simultaneous on-sale of such shares to the Company and
will make its trading decisions concerning the timing of the purchases of the
Shares independently of the Company. Any purchase of Shares made in relation
to the Programme will be carried out on the London Stock Exchange.

The Company will make further announcements following the completion of any
purchases. There is no guarantee that the Programme will be implemented in
full or that any Shares will be purchased by the Company.

The person responsible for arranging the release of this announcement on
behalf of Kainos is Gráinne Burns, Company Secretary.

Ends

 

For further information, please contact:

 

Kainos
via FTI Consulting LLP

Brendan Mooney, Chief Executive Officer

Richard McCann, Chief Financial Officer

 

Investec Bank
plc
+44 20 7597 5970

Patrick Robb / Nick Prowting / Ben Griffiths

 

FTI Consulting
LLP
+44 20 3727 1000

Dwight Burden / Kwaku Aning

 

About Kainos Group plc

Kainos Group plc is a UK-headquartered provider of sophisticated IT services
to major public sector, commercial and healthcare customers. Our expertise
spans three divisions: Digital Services, Workday Services, and Workday
Products.

 

·      Digital Services: We develop and support custom digital service
platforms that transform service delivery in public, commercial, and
healthcare sectors. Our solutions ensure security, accessibility,
cost-effectiveness, and improved user outcomes.

·      Workday Services: Specialising in deploying Workday, Inc.'s
Finance, HR, and Planning products, we are a respected partner in Europe and
North America. Experienced in complex deployments, we are trusted to launch,
test, expand, and support Workday systems.

·      Workday Products: Our established product suite, incorporating
Smart Test, Smart Audit, and Smart Shield, complements Workday by enhancing
system security and compliance. Our Employee Document Management product,
launched in October 2023, improves document generation and storage within
Workday while supporting an organisation's global compliance requirements.
Over 500 global customers use one or more of our products.

 

Our people are central to our success. We employ more than 3,000 people in 20
countries across Europe, Asia and the Americas.

 

We are listed on the London Stock Exchange (LSE: KNOS) and you can discover
more about us at www.kainos.com
(https://eur01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.kainos.com%2F&data=05%7C02%7CG.Burns%40kainos.com%7C31b718e62e0a4c2fc87e08dcfcfd5184%7C7ed9bdc7964d4dc09084812b90e05c6d%7C0%7C0%7C638663412134976962%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=dnun3enBL40bXji1lxBdZ5hyOpQWC9PTdlseZOT092o%3D&reserved=0)
.

 

 

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