Kainos ups dividend after 'exceptionally strong' growth

Kainos Group on Monday reported that its interim profits were boosted by increased customer demand, both locally and internationally.

For the six months ended 30 September, the software developer’s profit before tax jumped 28% to £8.7m after revenue leapt by 62% to £67.2m, driven by a 67% increase in healthcare revenues to £11m.

The digital services division performed particularly well, with revenue rising by 75% to £57.3m as the division strengthened its position in Continental Europe and signed 33 new deals, 17 more than in the same period last year.

Meanwhile, the digital platform arm enjoyed 13% revenue growth to £9.9m after the number of Kainos smart software customers increased from 103 to 139 when compared to the first half of last year.

The London-listed company declared an interim payout of 2.8 pence a share, up 40% from 2.0p paid last year.

Brendan Mooney, chief executive of Kainos, said: "An exceptionally strong six-month performance means that we are well on the way to achieving a ninth consecutive year of growth - in terms of our people, customers, revenue and adjusted pre-tax profit."

At 30 September, cash and cash equivalents stood at £38.8m, up from £27.3m at the same point last year.

"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 across all divisions and the board believes that the group is well-positioned for growth both in the short-term and in the coming years," said Mooney.

Kainos’ shares were down 3.57% at 405.00p at 1612 GMT.