Kainos Group (KNOS) Trading Update summary

Trading performance and guidance

• Workday Products division achieved strong growth, with ARR target raised to £200m by 2030.

• Digital Services and Workday Services divisions impacted by macroeconomic uncertainty and client decision delays.

• Revenue for FY2025 expected to be moderately below consensus (£388.8m), with most reduction affecting adjusted PBT.

• Workday Services saw lower contract wins and revenue decline in the last six months.

• Public sector demand remains, but contract mobilization depends on government budget clarity.

Operational actions and management response

• Cost control measures implemented, including reduced discretionary spending and contractor levels.

• Staff reallocated to high-growth areas in Workday Products and Healthcare within Digital Services.

• Delays are attributed to timing, not cancellations, with expectations of increased activity ahead.

Shareholder returns and outlook

• Board plans to approve a share buyback programme, with details to be announced with interim results.

• Company maintains a strong balance sheet and continues to invest in growth and international expansion.

• Board remains confident in substantial growth opportunities across all divisions.