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Highlights

  • Kainos Group PLC posted YoY revenue growth of 7.5% in H1FY24
  • The company’s revenue and dividend per share have a CAGR of 27.99% and 89.72%, respectively, from FY20 to FY23
  • The company is expecting FY24 revenue in the range of £395.4 million - £404.1 million

Kainos Group PLC (LSE: KNOS) is an FTSE 250 index-listed provider of IT services with 12 offices in Europe and North America. Headquartered in the UK, the company has its expertise across three divisions - Workday Products, Digital Services, and Workday Services. It has a market capitalisation of GBP 1250.56 million.

Driven by higher revenues from the public sector, the company’s top-line  surged by around 7.5% YoY in the first half of FY24. Similarly, its adjusted pre-tax profit surged 11% YoY with an adjusted profit percentage of 20%. The company has also increased its interim dividend by around 5.1% YoY in the same reporting period.

Further, the company’s revenue and dividend per share have demonstrated a compound annual growth rate (CAGR) of 27.99% and 89.72%, respectively, from FY20 to FY23 as depicted in the charts below:

Recent business update

As per the year-end trading update released by KNOS on 15 April 2024, the company’s revenue is expected to be between £395.4 million - £404.1 million for FY24, and Adjusted PBT may remain in the range of £71.7 million - £78.6 million.

Company outlook

As per the company, it is well placed to achieve its £100 million of Annual Recurring Revenue (ARR) target by 2026 from its Workday-related products. Moving forward, the company anticipates no substantial revenue declines in its digital services division's healthcare and commercial sub-sectors. Overall, reinforced by its long-term customer relationships, the company is confident of its long-term prospects.

Top 10 Shareholders

The top 10 shareholders together hold approximately 51.80% of the company's total shares. Qubis Ltd has the largest shareholding, comprising around 9.72% of the total stake, followed by Mooney (Brendan Gerard) with approximately 6.05% shareholding, as illustrated in the chart provided.

Price Performance

The stock price of KNOS has witnessed an uptick of ~1.79% in the last one month. However, it has decreased by ~16.88% over the last six months. The stock has a 52-week low and 52-week high of GBX 900.50 & GBX 1,421.00, respectively. At present, it is trading below the average of its 52-week high-low.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 09 May 2024. The reference data in this report has been partly sourced from EODHD/Others.