'We remain grateful for the trust our customers place in us': Belfast tech firm CEO reports 'mixed' results amid market headwinds and restructuring
Adjusted pre-tax profit for Kainos Group stood at £65.6m, down from £77.2m, with strong growth in Workday Products revenue more than offset by the tough trading environment in its two services divisions
Belfast-headquartered IT provider Kainos Group has delivered a "mixed" set of financial results for the year to March 31 2025 amid market challenges in IT services.
Kainos, which operates across three divisions - digital services, workday services and workday products, delivered a revenue of £367.2m, a 4% decrease from the £382.4m it made the year before.
This was impacted by softer market conditions and increased competition, which affected workday services revenue and saw it fall by 12%.
Adjusted pre-tax profit stood at £65.6m, down from £77.2m, with strong growth in Workday Products revenue more than offset by the tough trading environment in its two services divisions.
Public sector revenue declined by 9%, reflecting the hiatus caused by the UK General Election and the delays in the new government setting out its longer-term plans to save money and increase efficiency through the continuing digitisation of government services.
In March, Kainos underwent a restructuring which saw 190 people leave the listed group as part of organisational changes.
The firm said looking ahead, it remains confident in the opportunities for digital transformation, as public, healthcare, and commercial organisations increasingly seek to harness technology - including AI - to improve services for users while reducing the cost of delivery.
Brendan Mooney, chief executive of Kainos, said: "Our results reflect a mixed year for Kainos, with strong growth in Workday Products and in our healthcare sector, set against broader market challenges in IT services - particularly in Workday Services and in the public and commercial sectors of Digital Services.
"We remain grateful for the trust our customers place in us to deliver their critical transformation initiatives. The economic backdrop has affected them and for many, the focus has been on maintaining investment in critical transformation programmes. For others, it has led to reductions or delays in technology expenditure as they navigate an ever-changing business environment.
"We delivered an improved business performance in the final quarter, where we recorded low single-digit percentage revenue growth, which allows us to look ahead with greater confidence, despite the ongoing volatility in the macroeconomic environment."
He added: "We are excited about the opportunity for our Workday Products division. Another year of excellent performance has positioned us strongly to meet our initial ARR target of £100 million during 2026. We expect to launch our fifth product in late 2025, designed to help organisations understand and address pay equality issues with particular focus on the EU Pay Directive, which will be adopted by EU member states in 2026.
"AI engagements with our customers continue to evolve rapidly, with experimentation remaining a key theme throughout the year. We completed over 80 separate engagements, with larger projects primarily in the public sector - reinforcing our position as the fifth-largest AI supplier to the UK public sector by contract value since 2018, behind organisations such as Microsoft and Palantir."