Kainos first-half profits rise; two acquisitions announced
By Michele Maatouk
Date: Monday 11 Nov 2019
(Sharecast News) - Kainos reported a rise in first-half profit and revenue on Monday thanks to strong momentum in its digital services business, as it announced two new acquisitions.
In the six months to the end of September, adjusted pre-tax profit was up 27% to £12.8m on revenue of £86.9m, up 29% on the same half a year ago. Sales orders grew 10% to £99.5m and the company lifted its interim dividend by 25% to 3.5p a share.
International revenues were up 86% to £17.9m, while commercial revenues were 66% higher at £29.3m and SaaS and software-related revenues rose 34% to £13.2m.
Chief executive officer Brendan Mooney said: "We are announcing another confident set of results, and remain on track to deliver our tenth consecutive year of growth, which we measure in terms of our people, customers, revenue and adjusted pre-tax profit. This achievement is more pronounced against an unsettled macro-economic backdrop.
"Our digital services division has maintained its strong momentum, fuelled by demand from existing and new customers, both locally and internationally."
Kainos also announced the acquisition of two specialist consulting companies.
The group has bought Formulate, which is a UK and European partner to Adaptive Insights, a financial and business planning software business that is part of Workday Inc. It has also purchased the Adaptive Insights arm of Implexa, which is the only accredited Adaptive Insights partner in Germany. Kainos did not disclose any financial details.
Mooney said: "I am delighted to welcome the Formulate and Implexa teams to Kainos. The quality and unique expertise of the teams, paired with their complementary values, were integral in our decision to make these acquisitions.
"We continue to see growing demand from organisations across the UK and Europe in modernising employee experience and financial management systems. By partnering with Workday, and as it continues to expand its products, we'll be able to enhance our value to customers."
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