Kainos Group sees full year in line with market views

IT, consulting and software solutions provider Kainos Group said on Tuesday that it expects results for the full year to be in line with market expectations.

In a trading update for the period from 1 April to the end of August, Kainos said that in the digital services division, the group was experiencing growth in the public sector.

Demand from central and regional government clients continues to strengthen, with notable new contract wins at the National Offender Management Service and the Home Office.

Meanwhile, demand for WorkSmart services in the UK and mainland Europe is strong, as the group has added a number of new enterprise clients, including Tullett Prebon. Kainos said take-up of its SaaS-based automated testing product, Smart, is solid and it continues to invest in product development and sales and marketing for Smart.

Kainos said its Evolve division continues to make progress with its Integrated Care SaaS platform and has signed a five-year subscription agreement with Hygieia to use Evolve to power its insulin therapy navigation application which aims to help diabetics systematically manage their changing insulin requirements.

“Although the outcome of the UK's referendum on Europe brings with it some uncertainties, the group continues to see immediate opportunities for growth.

“Kainos has a robust balance sheet with strong reserves, no debt and strong cash generation, as well as a growing level of recurring revenue.”

At 0929 BST, Kainos shares were up 6.2% to 166p.