Highlights

  • Revenue increased 7% to GBP 196.1 million, driven by growth across Digital Services, Workday Services, and Workday Products.
  • Contracted backlog rose 12% to GBP 396.9 million, supported by a 27% increase in bookings.
  • The Board announced a new GBP 30 million share buyback programme to commence in November 2025.

Kainos Group plc (LSE: KNOS), a UK-based IT provider specialising in Digital Services, Workday Services and Workday Products, reported revenue growth of 7% to GBP 196.1 million for the six months ended 30 September 2025 (H1 FY25: GBP 183.1 million).

Adjusted pre-tax profit declined by 16% to GBP 32.0 million, primarily due to planned first-half cost increases linked to investments in the Workday partnership, higher National Insurance costs and contractor utilisation. The adjusted profit margin stood at 16%, compared with 21% in the previous year.

Bookings rose 27% to GBP 227.9 million, reflecting strong performance across all business divisions, while the contracted backlog increased 12% to GBP 396.9 million.

Kainos closed the period with cash of GBP 105.5 million and announced plans for a GBP 30 million share buyback to begin following completion of the current programme on 19 November 2025.

Workday Products Drive Growth

The Workday Products division delivered revenue growth of 14% to GBP 39.2 million, supported by a 19% increase in annual recurring revenue (ARR) to GBP 77.5 million.

The division reached the key industry milestone of USD 100 million ARR in July 2025 and now serves more than 600 customers, with approximately 40% using two or more products.

Kainos continued to invest in innovation, with R&D expenditure of GBP 8.6 million and sales and marketing costs of GBP 10 million during the half year. Following the period end, the Group expanded its partnership with Workday through an exclusive resell agreement for the “Pay Transparency Analyzer powered by Kainos” solution, ahead of new European pay transparency regulations due in 2026.

Digital Services and Global Expansion

Digital Services revenue increased 6% to GBP 103.5 million, supported by growth in healthcare, where revenue rose 33% to GBP 29.6 million. Public sector revenue stood at GBP 59.7 million, slightly lower than last year, while new contracts are expected to boost second-half performance.

In North America, revenue grew 152% to GBP 7.8 million, driven by expansion in Canada and the acquisition of Davis Pierrynowski Limited (Davis Pier), a consultancy specialising in public and community sector challenges.

Workday Services Return to Growth

Revenue in Workday Services increased 4% to GBP 53.4 million, supported by higher demand in the Americas and improving momentum in EMEA. Bookings rose 35% to GBP 54.0 million, with a contracted backlog of GBP 62.1 million. The company continues to expand its geographic reach, including early progress in Australia, New Zealand, and Latin America.

International operations contributed 43% of Group revenue, up from 41% a year ago.

Customer Satisfaction and AI Expansion

Kainos reported a Net Promoter Score of 70, up from 58, with existing customers generating GBP 166.6 million in revenue, a 12% increase. The Group also achieved growth in its AI business, with revenue up 6% to GBP 15.3 million, supporting over 300 AI and data projects to date.

The company launched its Microsoft AI Centre of Excellence to develop next-generation agentic AI technologies and continues to enhance its AI product portfolio within the Workday ecosystem.

Outlook

Kainos expects continued momentum in the second half, with growth in Workday Products, Digital Services, and Workday Services. The Group reaffirmed that adjusted profit before tax for FY26 remains in line with market expectations.