Kainos Group PLC

Latest Results (06.03.2026):

Kainos Group PLC — Q4 FY2025 (year ended 31 March 2025): The Group reported FY25 results showing a mixed performance — revenue fell to £367.2m (-4% year‑on‑year) and adjusted pre‑tax profit decreased to £65.6m (-15%), while Workday Products, ARR and cash position strengthened. Management completed a £30.0m share buyback, announced a further £30.0m programme, and implemented a restructuring to refocus investment into products, AI and international growth.

Headline financials

Revenue £367.2m (-4%); statutory PBT £48.6m (-25%); adjusted pre‑tax profit £65.6m (-15%). Diluted EPS 28.2p (adjusted diluted EPS 38.3p). Total dividend per share 28.4p (+4%).

Bookings, backlog and cash

Bookings £382.4m (-10%); year‑end contracted backlog £368.2m (+3%). Strong cash position £133.7m (+6%) with cash conversion 112%. Share buyback of £30.0m completed (3,993,382 shares); Board intends a further £30.0m buyback.

Workday Products & ARR

Workday Products revenue £71.3m (+24%); Product ARR £72.6m (+20%). Management reiterated ARR targets of £100m by 2026 and £200m by 2030 and expects a fifth product launch in late 2025.

Division performance

Digital Services revenue £197.2m (-7%), with public sector weakness (‑9%) but healthcare up 14%. Workday Services revenue £98.7m (-12%), impacted by lower volumes and increased competition; international expansion into APAC noted.

Investments and costs

R&D increased 24% to £16.8m (expensed); sales & marketing up 24% to £15.5m. A £7.8m pa Built on Workday multi‑year agreement was activated (£5.2m recognised in FY25).

Restructuring and workforce

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

AI and growth areas

AI & related revenues rose 61% to £41.1m and now represent 21% of Digital Services revenue. Kainos reports over 250 AI professionals, a Microsoft AI Centre of Excellence, and 3 solutions on the Workday Marketplace.

Customers, satisfaction and headroom

Active customers increased to 1,094 (from 930). Net Promoter Score improved to 70 (from 58). Existing customers still generate the majority of revenue (82%).

Outlook

Management describes an improving finish to FY25 (Q4 sequential growth low single digits) but remains cautious on near‑term macro volatility. They expect continued momentum in Workday Products, recovery in Digital Services (public & healthcare) and gradual improvement in Workday Services, while prioritising AI, data and international expansion.