REG - Kainos Group plc - Year-end Trading Update

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RNS Number : 0423B  Kainos Group plc  20 April 2026

20 April 2026

Kainos Group plc

("Kainos" or the "Company")

 

Year-end 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 a trading update for the year ended 31 March 2026.

 

The Board anticipates delivering revenue ahead of consensus and adjusted PBT
in line with forecasts*. The Company continued its strong performance in the
second half of the financial year, achieving double-digit percentage revenue
growth, very strong sales performance and record backlog levels.

 

Kainos grew its workforce by 21% to 3,475 people which includes 259
contractors and third-party consultants. This strong recruitment reflects the
depth and visibility of the order pipeline, and the use of external
contractors and consultants is a considered response to increased demand,
despite the short-term impact on margins.

 

Divisional Highlights

·    Our Workday Products division achieved Annual Recurring Revenue (ARR)
exceeding £89m at year end and we remain on track to meet our £100m ARR goal
during calendar year 2026 and our £200m target by 2030. Pay Transparency,
launched in November to address the EU Pay Transparency Directive (effective
June 2026), has secured 35 clients in the period.

 

·   Digital Services grew very strongly, securing significant healthcare
and public sector contracts, including programmes with NHS England and the
Driver and Vehicle Standards Agency. North America revenue growth remained
strong.

 

·   As indicated at our interim results, Workday Services returned to
growth in H1 and we recorded further progress in the second half, particularly
in our Americas and APAC regions.

 

Outlook

We are optimistic about the future given our strong momentum across digital
transformation and our Workday businesses and reflecting our customers'
continued trust and our colleagues' on-going commitment.

 

Our balanced approach enables Kainos to navigate external uncertainties while
sustaining momentum across divisions and markets, with margin improvement
anticipated in H2 FY27 as the use of contractors reduces. While the
macroeconomic environment remains volatile, Kainos operates in markets driven
by clear structural trends, and we remain confident of delivering on our
strategy.

 

This confidence is based on our strong financial position: an excellent
backlog and solid pipeline, a strong, debt-free balance sheet, disciplined
capital allocation and robust cash generation.  Together with favourable
market trends, strategic capabilities and operational strengths, this provides
a solid foundation for sustained growth and long-term shareholder value.

 

We will announce the results for the year ended 31 March 2026 on 18 May 2026.

* Note: Company compiled range is based on known sell-side analyst estimates.
The ranges are: Revenue £392.1m - £411.1m and Adjusted PBT £65.6m -
£70.0m. The respective consensus figures are £406.5m 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 / Nick Prowting / Arnav Kapoor

 

FTI Consulting LLP
                                 +44 20 3727 1000

Dwight Burden / Kwaku Aning / Chloe Yorke
           kainos@fticonsulting.com

 

About Kainos

Kainos Group plc is a UK-headquartered provider of sophisticated IT services
to major public sector, commercial and healthcare customers and a developer of
software applications. Our shares are listed on the London Stock Exchange
(LSE: KNOS).

 

Our expertise spans three divisions: Digital Services, Workday Services, and
Workday Products.

 

Digital Services

Our Digital Services customers face a range of business challenges, including
the need to improve their customer service, reduce costs and increase
productivity. We help them to solve these problems by developing and
supporting custom digital service platforms. Our solutions enable customers
and their users to work smarter, faster and better, while ensuring the
platforms are secure, accessible and cost-effective.

 

Workday Services

We are a respected partner to Workday Inc., providing a comprehensive range of
services to support customers deploying Workday's Finance, HR and Planning
products. Our experience in complex deployments means we are trusted to
launch, test, expand and support Workday systems.

 

Workday Products

We have developed proprietary software products that complement Workday by
enhancing our customers' system security and compliance and improving their
document generation and storage. Over 600 global customers now use one or more
of our products, with adoption growing rapidly.

 

Our people

Our people are central to our success. We employ more than 3,475 people in 18
countries across Europe, Asia and the Americas.

 

Find out more

You can discover more about us at www.kainos.com (http://www.kainos.com) .

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