LONDON (ShareCast) - (Sharecast News) - FTSE 250 IT provider Kainos announced a special dividend on Monday and said annual profit and revenue will be ahead of market expectations as trading from 1 April to date has been strong despite the impact of Covid-19.
The company said revenue for the year to the end of March will be "well ahead" of current consensus forecasts, while adjusted profit will be "substantially ahead".

"The resilience in our business has been driven by our long-term relationships with our customers, by on-going demand within the NHS, public sector and Workday segments and by our diversification of revenues across customers, end markets and geographic regions," it said.

"During the period, the pausing of recruitment has generated several one-off efficiencies in utilisation, recruitment costs and training costs and we have experienced reduced travel expenditure during the lockdown period. We view the majority of these efficiencies as non-recurring in nature and, post-lockdown, will reduce when our growth resumes."

Kainos has now withdrawn from the government's Job Retention Scheme and will be repaying all claimed support payments.

As at 24 July, the company had net cash of more than £62m, up from £40.8m at the end of March, and no debt.

Kainos said it has elected to pay a special dividend of 6.7p for the year to the end of March in lieu of a final dividend, having assessed its ongoing cash requirements under a range of scenarios. It had previously decided not to declare a final dividend as part of its Covid-19 cost-reduction measures.

"We also expect to return to our normal interim and final year dividend cycle for the current financial year," it said.

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