Kainos reports 9% jump in revenue on back of strong demand
Belfast-based provider of digital services withstands storm of NHS funding cuts
Brendan Mooney, chief executive of Kainos. Photograph: Colm Lenaghan/Pacemaker
Kainos, a Belfast-based provider of digital services and platforms, reported a 9 per cent jump in revenues in 2017 on the back of strong demand and geographic expansion, as it eyes a Brexit boon.
Revenues rose by 9 per cent to £83.5 million (€95.7 million), as pretax profits fell 7 per cent to £13.3 million in the 12 months to March 31st.
Chief executive Brendan Mooney said he was “very pleased” with the company’s performance during the year, noting that revenue growth was driven “by demand from existing customers, new customer acquisition and geographic expansion”. The firm also saw strong growth in the commercial sector, which is now the fastest-growing segment within the division. Kainos proposed a 5 per cent increase in its dividend to 6.3 pence.
Almost a quarter of revenues come from overseas, and the company saw strong growth in the bothe US and UK markets during the year.
“The US is a big push for us,” Mr Mooney said.
In total, Kainos signed up 57 new clients, bringing the total up to about 260.
Despite the funding challenge in the NHS in the UK, Mr Mooney said the company’s digital-platforms division “continues to make progress”.
“We remain focused on providing exceptional careers for our staff and exceptional digital products and services for our customers. The group’s pipeline of prospects continues to strengthen across all divisions and the board believes that the group is well-positioned for growth in the coming years.”
On Brexit, Mr Mooney said that while he is disappointed with the impact it will have on the regional economy, it could be a boon for the company.
“For us it’s probably a positive,” he said, adding that clients are looking to invest now and do digital projects before Brexit happens.
Kainos employs about 1,000 staff across eight offices in Europe and the US, and has just opened a Frankfurt office.