IT services and consulting firm Kainos has reported that revenue was up 16% year-on-year to £96.7m, for the 12 months ended 31 March. And adjusted pre-tax profits went up by 7% to £15.3m.
UK sales were up 15% for the year, while international revenue – which now accounts for 20% of turnover – jumped 18%. Through the UK government's ongoing digital transformation programme, sales from digital services included deals with the Passport Office, the Welsh Tax Authority and the Driver and Vehicle Standards Agency (DVSA).
Operating margins however fell from 17.1% to 15.8% over the year, mainly through the use of more contract staff to meet customer demand, and the one-off costs from opening new offices in Birmingham, Frankfurt and Copenhagen. The company already had international offices in Gdansk and Amsterdam.
Kainos is a Workday software implementation partner, that has signed up 39 new clients in mainland Europe, it says, compared to the 12 deals it signed in 2017.
Kainos CEO Brendan Mooney said all-important recurring revenues now account for 20% of annual income for the company, twice the run rate at the time of its IPO in 2015. Mooney said: “The group’s pipeline of prospects continues to strengthen across all divisions and the board believes the group is well-positioned for growth both in the short term and in the coming years.”
