Kainos Group PLC

Latest Results (08.12.2025):

Kainos Group PLC — Q4 FY25 (full year to 31 March 2025): the Group reported FY25 revenue of £367.2m (‑4% y/y) and adjusted pre‑tax profit of £65.6m (‑15% y/y) as strong Workday Products growth was offset by weaker services trading; diluted EPS fell to 28.2p and the Board completed a £30.0m buyback and announced a further £30.0m programme.

Headline financials

Revenue £367.2m (2024: £382.4m, ‑4%); adjusted pre‑tax profit £65.6m (2024: £77.2m, ‑15%); statutory PBT £48.6m (‑25%); adjusted diluted EPS 38.3p (‑18%); total dividend 28.4p (+4%).

Cash, buyback & balance sheet

Year‑end cash £133.7m (+6%); cash conversion 112%; completed £30.0m share buyback (3,993,382 shares) and announced a further £30.0m buyback to execute over the next six months.

Bookings, backlog & pipeline

Bookings fell 10% to £382.4m (H1 £179.5m, H2 £202.9m); contracted backlog rose 3% to £368.2m, supporting a cautious but constructive outlook.

Divisional performance

Workday Products grew strongly: revenue £71.3m (+24%) and ARR £72.6m (+20%). Digital Services revenue fell 7% to £197.2m (public sector down 9%, healthcare +14%, commercial ‑32%). Workday Services revenue declined 12% to £98.7m, with international expansion into APAC starting to show early wins.

Investment & partnership costs

R&D up 24% to £16.8m; sales & marketing up 24% to £15.5m. A multi‑year Built on Workday agreement represents £7.8m pa, with £5.2m recognised in FY25 following activation in July 2024.

Restructuring for growth

Workforce reduced ~7% (190 people) in March; restructuring costs £8.4m in FY25. Estimated annual cost savings ~£19m, with ~two‑thirds to be reinvested into product, AI, data and international expansion.

AI and growth areas

AI and related revenues grew 61% to £41.1m (now 21% of Digital Services); Kainos has ~250 AI professionals, a Microsoft AI Centre of Excellence and three AI solutions on the Workday Marketplace.

Profitability & margin

Adjusted profit margin reduced to 18% (2024: 20%), reflecting lower services activity and the investment and restructuring costs described above.

Outlook

Management sees continued momentum in Workday Products (targets: £100m ARR by 2026, £200m by 2030), recovery in Digital Services (dependent on UK spending clarity) and gradual easing in Workday Services headwinds, but remains cautious given macro volatility.