Market unhappy with Kainos despite solid numbers

It was a solid start to life as a publically-traded company for Kainos, according to its interim six month report released on Monday.

The UK-based IT provider saw revenue grow 29% over the previous period, to £37.2m as at 30 September 2015. Gross profit was up 17% to £18.3m, and the adjusted pre-tax profit increased by 20% to £6.8m.

Kainos saw a serious jump in sales bookings, which were up by 55% to £34.8m when excluding third-party bookings.

The results are the first since Kainos listed on the London Stock Exchange, in an IPO on 10 July.

“We have seen solid performance across the group during this reporting period, with increasing levels of demand across each of our operating divisions”, said Kainos CEO Brendan Mooney.

“Sales bookings in this period include a number of multi-year resourcing frameworks in government and a flagship Kainos Evolve deal, and the sales pipeline for the remaining half of the year continues to strengthen”, he added.

The FTSE Small Cap-listed firm also established local operations in Boston, Massachusetts, and Amsterdam during the period, as well as adding 60 staff.

Kainos remained in a similar financial position as it did in the previous September, with net assets totalling £18.7m.

Despite the solid results, Kainos shares took a dive on Monday afternoon, trading down 11% at 13:40 to trade at 249.0p.