Northern Ireland software company Kainos expects to generate revenue of up to £393 million (€454 million) as well as a profit before tax of more than £65 million this year, it said in a trading update on Monday.
Kainos Group, established in 1986 as a spin-out company from Queen’s University Belfast, provides digital technology services and platforms to customers that include the National Health Service.
The trading update, which covers the period from April 1st to date, said a “solid performance” in its fourth quarter meant it now expects revenues for the year ending March 31st, 2026, at the upper end of consensus forecasts.
It further said it was maintaining a “prudent outlook” and anticipated delivering adjusted profit before tax in line with current consensus forecasts.
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The range for revenue is between £378 million and £393.4 million, while for range for adjusted profit before tax it between £65.1 million and £74.7 million.
It said its estimates followed stronger sales in the period, which have “creating opportunities” for further operating progress during the rest of the financial year.
With new projects mobilising across all three divisions – digital services, workday services, and workday products – it is also recruiting additional staff, as well as increasing its short-term use of contractors to support both growth and its “strong pipeline”.
Within digital services, it said it has 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.
It said a strong sales performance in its workday services division will result in a return to growth during the year, driven by improved results in its core European and North American markets as well as further progress in Australia, New Zealand and Mexico.
“Although the macroeconomic environment has improved, volatility persists, and we continue to balance growth, international expansion, investment and profitability against this backdrop,” the company said.
“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.”
