Kainos FY revenues to be 'moderately below' market views, shares slide
By Michele Maatouk
Date: Thursday 31 Oct 2024
(Sharecast News) - Kainos tumbled on Thursday as the IT services company said full-year revenues would be "moderately below" current market consensus, with the majority of the reduction flowing through to adjusted pre-tax profit.
Consensus expectations are for revenue of £388.8m for the year to the end of March 2025, and adjusted pre-tax profit of £78.8m.
In an update on trading since 2 September, Kainos said its Digital Services and Workday Services divisions continue to be affected by the macroeconomic environment and related delays in client decision-making.
As a result of these factors, the board has "moderated" its expectations for the second half of the year, it said.
"Whilst these changes to our expectations are about delays rather than cancellations, we nonetheless continue to be focused on maintaining prudent cost control measures, reducing discretionary spending, minimising our level of contractors, while reallocating staff to our current high growth areas in Workday Products and in the Healthcare Sector of Digital Services," it said.
"Notwithstanding this backdrop for FY2025, the board continues to believe that we are well positioned in our core markets, which offer substantial growth opportunities in all our divisions and that we are maintaining the appropriate balance between investment for future growth, international expansion and profitability."
At 0840 GMT, the shares were down 13% at 745p.
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