REG - Kainos Group plc - Trading Statement

KainosAnnouncement

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RNS Number : 2956X  Kainos Group plc  01 September 2025

01 September 2025

Kainos Group plc

("Kainos" or the "Company")

 

H1 Scheduled Trading Update

 

Kainos Group plc (KNOS), a UK-headquartered IT provider with expertise across
three divisions, Digital Services, Workday Services, and Workday Products,
today issues its customary trading update for the period from 1 April 2025 to
date.

 

Building on our solid Q4 2025 performance, we delivered further sequential
improvement in the period. As a result, the Board now expects revenues for the
year ending 31 March 2026 at the upper end of consensus forecasts*, driven by
stronger sales in the period. This sales success is creating opportunities for
further operating progress during the rest of the financial year.

 

With new projects mobilising across all three divisions, we are recruiting
additional staff, as well as increasing our short-term use of contractors to
support both growth and our strong pipeline. We are maintaining a prudent
outlook and anticipate delivering Adjusted PBT in line with current consensus
forecasts*.

 

Divisional Highlights and Outlook

·    Our Workday Products division has continued to deliver strong growth,
passing the $100m Annual Recurring Revenue milestone in July. We are working
with design partners including Diageo and Linklaters on our next product, Pay
Transparency. It will launch in Q3 to support customers responding to the EU
Pay Transparency Directive, which comes into force in June 2026.

 

·    Within Digital Services, we have secured several significant
programmes in both healthcare and the public sector, including contracts in
the Home Office, NHS England, and the Driver and Vehicle Standards Agency.
These engagements are expected to lead to meaningful increases in revenues for
both sectors in the second half of the financial year. Strong revenue growth
in North America continued, offset by performance in the commercial sector,
where activity remained muted and below prior-year levels.

 

·    A strong sales performance in our Workday Services division will
result in a return to growth during the year, driven by improved results in
our core European and North American markets as well as further progress in
Australia, New Zealand and Mexico.

 

Our long-term customer relationships, combined with the commitment of our
people, continue to drive valuable outcomes. We remain grateful for the trust
our customers place in us and for the energy and talent of our colleagues.

 

Although the macro-economic environment has improved, volatility persists, and
we continue to balance growth, international expansion, investment and
profitability against this backdrop.

 

Kainos continues to operate in markets with clear long-term structural
drivers, including the emerging opportunities from wider AI adoption. We
remain confident in our strategy to capture and deliver on these
opportunities. Backed by a robust backlog, healthy pipeline, solid balance
sheet, disciplined capital allocation, and strong cash flow, we have a firm
foundation from which to drive long-term shareholder value.

 

We will announce results for the six months ending 30 September 2025 on 10
November 2025.

 

* Note: Company compiled range is based on known sell side analyst estimates.
The ranges are: Revenue £378.0m - £393.4m and Adjusted PBT £65.1m -
£74.7m. The respective consensus figures are £385.0m and £66.4m.

 

Kainos Group plc Legal Entity Identifier: 213800H2PQMIF3OVZY47

 

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 / Ben Griffiths / Nick Prowting

 

FTI Consulting
LLP
+44 20 3727 1000

Matt Dixon / Dwight Burden / Kwaku Aning

 

About Kainos

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 global compliance requirements. Over 450 global customers use one
or more of our products.

 

Our people are central to our success. We have more than 2,800 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.Poole%40kainos.com%7C99267121c31a49c8927908dc710fce0f%7C7ed9bdc7964d4dc09084812b90e05c6d%7C0%7C0%7C638509559890524754%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=HjbxpvmkdkY3EZWLoWMCMMrpxWfrEJkj6Rwmjx3luE4%3D&reserved=0)
.

 

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