Belfast-based software company Kainos said it would cut costs and take measures to protect cash to mitigate the impact of coronavirus on its business.
The company, which provides digital services and platforms, said it would not declare a dividend for the financial year 2020, which ended March 31st, and had deferred pay increases until next year.
Bonus schemes had also been curtailed, and its chief executive, chief financial officer and senior vide-president of business development would take no salary or bonus for six months. The rest of the executive team are taking a 50 per cent pay cut, while non-executive board members will cut their fees by 20 per cent.
The company is also placing staff on furlough, pausing recruitment and has deferred the capital investment relating to its planned new office in Belfast.
Kainos said its annual results would be in line with market forecasts despite the disruption caused by the pandemic, with trading continuing with positive momentum.
“A clear focus on execution throughout the year has resulted in an excellent sales performance and a substantial backlog as the company enters FY21” Kainos said. “The company continued to generate cash from operations, and has a robust balance sheet with no debt and a cash balance in excess of £40 million.”
Kainos began implementing home working for its 1,700 staff on March 5th.
"Several of our customers are at the forefront of responding to Coronavirus and we are supporting their efforts: from Covid-19 amendments to the NHS App; supporting consular services for UK citizens living or stranded overseas; and to emergency passport applications for urgent and compassionate reasons," Kainos said.
“In the current environment digital access to essential services has become extremely important. We have, therefore, taken steps to offer, pro bono, the expertise of some of our most experienced colleagues to help key government departments, care providers and organisations provide digital services to those that need them most.”
Cost base
The company, which includes a number of government and healthcare organisations among its clients, said it would be prudent to manage its cost base, despite the expected resilience of those sectors during the crisis, until the impact of the crisis on its business was more apparent.
It said the decision not to declare a dividend would be be reviewed later in the year.
Kainos had cash deposits in excess of £40 million and no debt at the end of March.
