Kainos, a software business founded in Northern Ireland, has reported a rise in revenue and pre-tax profit by the respective margins of 2% and 14% as indicated by their annual results for the previous year. Originally established in 1986 as a Queen’s University Belfast spin-off, Kainos serves its customers, including the NHS, with digital tech services and platforms.
According to the company’s yearly results, year ending March 31st, 2024, the company witnessed its revenues grow to £382.4 million (€446.4 million) and its adjusted pre-tax profit to £77.2 million. Kainos Group’s Chief Executive, Russell Sloan, considered this strong profit surge to be a testament to their business principle even in a relatively stagnant growth environment.
Collectively, the company’s primary areas of business in workday services, workday goods, and public sector digital services generated 80% of the revenue, delivering a growth of 7%. Conversely, the company’s digital services wing experienced a 5% drop in revenue due to the overall economic scenario.
Moreover, the firm reported an 11% fall in revenues from their healthcare sector due to the absence of any pandemic-related projects during the year. Despite these fallbacks, Kainos did see its international business grow by 13% to £149.8 million, whilst also raising its investments in AI and product development by 48%, reaching £13.5 million.
The company’s personnel count remained at 2,995 throughout the year. However, while reducing the count of contractors, the firm saw an increase of 172 in permanent workers. The Directors have recommended a final dividend of 19.1p, bringing the total yearly dividend to 27.3p, reflecting a 58% distribution of the adjusted post-tax profit.
Mr Sloan noted that this marks their 14th year of successive growth, with a conscious focus on balanced operational performance encompassing growth, international outreach, future investments and profitability. He stated the company’s commitment to more than 900 clients, many of them global organisations, who faced challenging circumstances in an evolving market environment.
Looking forward, Sloan suggests that potential growth in the company’s markets might not have as much of a prominent role.
“In periods of economic instability, it’s natural that the prospect of growth in our markets might appear less noteworthy,” he stated.
“Nevertheless, the subdued visibility doesn’t undermine the magnitude of the opportunities present – digital innovation is an essential building block for companies aiming to cut down costs and enhance their manoeuvrability.
“This ongoing shift from antiquated inefficient systems to modern, nimble ones has and will persist as a long-term phenomenon with firms reallocating their expenditures. This progress will be given a boost by the introduction of AI-powered systems where top-notch data quality is essential.
“Thanks to our strategy execution, we have managed to occupy leading roles in our key markets, which empowers us to face the future with certainty.”