SHARES in Belfast IT services firm Kainos rocketed on Wednesday morning after the company announced that its revenues and profits for the current financial year will be much higher than previously forecast.
In May, the tech firm dropped its forecast for its earnings before interest, taxes, and amortization (EBITA) in 2020/21, citing the impact of Covid-19.
But its strong performance in recent months, driven by valuable contracts with the NHS and public sector, has prompted a significant re-adjustment.
Revenue for the year ending March 31 2021 is now expected to be around £213.5m, 15 per cent up on the last forecast.
EBITA is expected to be £47.4m, around 39 per cent higher than the previous forecast.
Its expected earnings for 2022 have also been significantly revised upwards.
The update resulted in a 26 per cent surge in the listed company’s share price on Wednesday morning. By mid-afternoon, the price was almost £3 per share higher than Tuesday, taking the company’s overall market capitalization value to just under £1.6bn.
In a statement, Kainos said: “Driven by the structural shift of digital adoption, ongoing customer demand remains high and this has resulted in a very strong trading performance within the period.
“We therefore expect results for the full year ending 31 March 2021 to be materially ahead of current consensus of revenue and significantly ahead of adjusted profit forecasts.”
