BELFAST IT services group Kainos has reported another strong year of growth with adjusted pre-tax profit rising 15 per cent to £67.6 million.
The London-listed tech company, which now employs 2,990 people worldwide, saw revenue surge by 24 per cent to £374.8m for the year to March 31 2023.
Kainos said the growth was across the board, but its international figures were particularly strong.
The group’s international revenue was just £3m when the company went public eight years ago.
Kainos' revenues in North America and Europe climbed to £132m in the latest year, an increase of 52 per cent, meaning international sales accounted for just over one-third (35 per cent) of its total business.
The tech giant has traditionally benefited from government digital transformation contracts. And while that side of the business remained relatively strong, its commercial side grew by 51 per cent to £186.4m in the latest financial year, which was 50 per cent of its total revenue.
Public sector contracts rose 24 per cent to £138m, as governments still pursued digitisation and efficiency programmes. But healthcare revenues fell 26 per cent to £50.4m, as pandemic-related spending eased.
The impact of inflation and competition for skilled tech workers was also clear in the latest financial results.
The Belfast-based company saw its workforce, including contractors, rise by 298 in the last financial year, an increase of 11 per cent.
But staff costs soared by almost £64m (38 per cent) to £232m last year.
However, Kainos’ Belfast-based chief executive Brendan Mooney said the business was starting to see a “cooling” in the labour market, with its staff retention figures climbing.
Shares in Kainos rose early on Monday morning in response to the latest financial figures, taking the total value of the company to £1.55 billion.
"Our latest results, the eighth as a public company, outline another excellent performance as we once again achieved strong growth in terms of people, customers, revenue and profitability,” said Mr Mooney.
“These results describe our performance over the past twelve months. While we draw a sense of satisfaction from the consistency of our performance, representing the thirteenth consecutive year of growth, our attention is firmly fixed on the future.
“The digital transformation market continues to grow in importance for organisations operating in government, in healthcare and in the commercial sector.
“This importance is translating into continued demand for the work we do for our customers.
“Despite the economic uncertainty, there is an urgency for our customers about extending existing projects and starting new projects, as they change the ways they deliver essential services to citizens, patients, customers and employees.”
