Kainos doubles profits in 11th consecutive year of growth

Pre-tax profit at Northern Ireland software company Kainos more than doubled last year as it recorded its 11th consecutive year of growth.

Kainos, which provides digital technology services and platforms to customers that include the National Health Service (NHS), was established in 1986 as a spin-out company from Queen's University Belfast.

In its full-year results for the period to March 31st, 2021, the company said it delivered a “very strong” business performance. It achieved revenue growth of 31 per cent to £234.7 million (€272m), up from £178.8 million the previous year. Adjusted pre-tax profit more than doubled to £57.1 million from £25.5 million.

Bookings were up 6 per cent to £258.8 million from £243.6 million, while there was contracted backlog growth of 15 per cent to £206.2 million.

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The company was highly cash generative with cash conversion of 112 per cent, which was up from 97 per cent, and period-end net cash of £80.9 million as compared with £40.8 million.

It said its customer approval rating remains high at 98 per cent.

Recruitment over the period saw an increase in staff numbers to 2,024 from 1,715, with employee retention increasing to 92 per cent from 90 per cent.

“We have made significant progress in our climate action programme, achieving carbon neutrality for the year,” it said.

Within its digital services division it enjoyed strong revenue growth of 32 per cent to £161.6 million. Its workday practice division recorded revenue growth of 30 per cent to £73.1 million.

Critical systems

Kainos chief executive Brendan Mooney said: "For the past 15 months we have been physically distant from our colleagues and customers, but we have worked seamlessly together to deliver critical systems.

“Our work has included supporting the NHS response to Covid-19 and ensuring that our government and commercial clients continued to provide essential services to citizens, customers and employees.

“Since 2010 we have been helping our customers drive digital transformation. That trend has continued through the pandemic, and we have once again delivered a strong business performance.”

Mr Mooney said the company has “maintained our high levels of customer satisfaction and employee engagement, at the same time delivering record levels of sales, revenue, adjusted pre-tax profit and cash”.

He continued: “We marked significant milestones through the year. We now have over 500 customers and we employ over 2,000 talented colleagues; and we have made significant progress in our climate action programme, achieving carbon neutrality for the year.

“Our performance has only been possible because of the trust and support of our customers and the talents and hard work of our colleagues. Once again we have a deep sense of gratitude towards our people and our clients.”