Kainos share price plunges despite 37% revenue jump. Analysts blamed in-line guidance for a slower second half after results for the six months to 30th September Listen to article IT provider Kainos Group reported revenue up 37% to £268.8 million for the six months ended 30th September 2026, against £196.1m a year earlier. However its share price fell 12% in one day following the announcement. Analysts pointed to a potential slowing in revenue growth in H2 after unchanged guidance from the firm, which stated: "Following the strong performance in FY26 and H1 27, we expect further growth in revenue and adjusted profit before tax in the second half of FY27, in line with current market expectations." Statutory profit before tax for the half-year rose 26% to £35.8m, while adjusted pre-tax profit grew 30% to £41.7m. Group bookings grew 27% to £402.3m, and contracted backlog stood at £853m, up from £679.3m at 30th September 2025. Kainos said the increase reflected the award of several large, multi-year contracts, most notably in Digital Services, and that it had updated its bookings and backlog calculations to reflect the full value of contracts secured by Digital Services. Digital Services revenue increased 57% to £162.5m, with healthcare up 85% to £54.7m, public sector up 55% to £76m and defence up 44% to £15.3m. Gross margin in the division declined by 3.9% to 31.9%, which Kainos said largely reflected the use of contractors and supply partners to support rapid growth. The company said it expects margins to normalise as it replaces third parties with employed staff as revenue growth moderates. It named contracts worth up to £150m with Defra, signed during the period, and £111m with the Home Office and £84m with the Foreign, Commonwealth & Development Office, due to be signed in the second half. Workday Products annual recurring revenue increased 24% to £96.0m, and revenue in the division grew 22% to £48.0m. The division now has over 750 customers, compared with more than 600 a year earlier. Kainos said Derek Brown, who joined from Quantexa, became Workday Products chief executive in June 2026. Workday Services revenue was 9% higher at £58.3m, with North America up 10% and EMEA, including Australia, up 8%. Period-end cash was £86.5m, compared with £105.5m a year earlier, while cash conversion was 62%. Chief executive Brendan Mooney described the six-month performance as "excellent".

Kainos holds guidance after strong first half. 1,105.00p. 09:28 09/11/26. Kainos delivered a strong first half, with adjusted pre-tax profit rising 30% to £41.7m on revenue growth of 37% to £268.8m. The IT group also reported higher bookings and a larger contracted backlog, supporting confidence in future earnings as it held guidance for the full year. 24,562.37. 5,849.00. 5,785.56. 2,091.55. 09:30 09/11/26. The profit increase was driven by strong growth in Digital Services, particularly UK public sector and healthcare work, alongside continued expansion of its Workday business, where recurring revenue continued to grow strongly. Looking ahead, Kainos said it expected further revenue and adjusted pre-tax profit growth in the second half of the fiscal year, in line with market expectations, although Digital Services growth is expected to moderate against a stronger comparative period. The group also highlighted longer-term confidence, supported by a substantial multi-year backlog, a strong balance sheet and growing demand for digital transformation and AI-enabled solutions. Workday Products is expected to surpass £100m in annual recurring revenue during the current quarter. Reporting by Frank Prenesti for Sharecast.com

Kainos half-year margins drop but sales and profit beats expectations. Published on 11/09/2026 at 03:56 am EST Alliance News (Alliance News) - Kainos Group PLC on Monday confirmed it full-year financial guidance, as revenue and profit beat expectations in the first half of the year, despite crimped margins. London-based Kainos provides IT support to customers across three divisions: Digital Services, Workday Services, and Workday Products. Its shares were down 8.5% at 1,126.00 pence each in London on Monday morning but remain up more than 20% in the past 12 months. The wider FTSE 250 index was up 0.3% early Monday. Pretax profit rose 26% to GBP35.8 million for the six months ended September 30 from GBP28.4 million a year prior. Revenue jumped 37% to GBP268.8 million from GBP196.1 million, with organic growth of 36%, beating GBP253.2 million Visible Alpha consensus, cited by Stifel. Gross margin declined to 43.1% from 48.0% mainly reflecting the increased use of contractors and partners to help scale up major new projects, Kainos said. Contractors and partners have much lower margins than Kainos staff, the firm explained. Kainos increasingly uses partners to win larger contracts where it acts as prime contractor, it explained. "This strategy leads to lower gross margins but much higher total contract value wins as evidenced in the booking figures," it said. Bookings grew 27% to GBP402.3 million in the half year from GBP317.0 million a year before, while contracted backlog increased 26% to GBP853.0 million from GBP679.3 million. Digital Services "had an excellent six months", Kainos said, with revenue surging 57% to GBP162.5 million, driven by strong demand from UK government and healthcare clients, although the division's gross margin narrowed by 3.9 percentage points to 31.9%. Workday Products revenue rose 22% to GBP48.0 million, with annual recurring revenue reaching GBP96.0 million, while Workday Services revenue grew 9.0% to GBP58.3 million. Workday Products is "firmly on track" to reach its annual recurring revenue targets of GBP100 million by the end of 2026 and GBP200 million by the end of 2030, Kainos said. Adjusted pretax profit increased 30% to GBP41.7 million in the recent half from GBP32.0 million a year before, ahead of consensus which growth of 27%. Diluted earnings per share rose 38% to 23.1 pence from 16.7p, or by 45% to 27.4p from 18.9p on an adjusted basis. Kainos raised its interim dividend by 6.0% to 10.4p per share from 9.8p. Looking ahead, Kainos expects further revenue and adjusted pretax profit growth in the second half, in line with current market expectations. "The group has a substantial, multi-year backlog, a robust balance sheet and a proven strategy, giving us a solid platform for further success," Kainos said. In August, Kainos said its annual results will be "comfortably ahead" of current market expectations. At the time, Kainos cited these as adjusted pretax profit of GBP75.0 million to GBP84.0 million on revenue of GBP498.0 million to GBP514.0 million. This would be up from GBP67.1 million and GBP431.1 million in financial 2026. By Jeremy Cutler, Alliance News reporter (C) Alliance News - 2026