Kainos: IT firm Kainos reports 11% half-year profit rise

Kainos specialises in helping organisations to digitise their operations

Kainos, the Belfast IT firm, has increased profits for the first half of this financial year by 11%.

The software company's adjusted pre-tax profit was up from £34m to £38m.

Kainos, which specialises in helping organisations to digitise their operations, saw sales increase by 7% from £180m to £193m

The firm counts the UK government as one of its major clients, with projects including the NHS England app and the online passport renewal service.

Forty per cent of its revenue is now generated from outside the UK.

Its largest division, digital services, saw a slight fall in sales with reduced spending from health and commercial customers.

That was more than offset by a strong performance by the firm's Workday divisions; Workday is a suite of financial management and HR software.

Kainos boss Russell Sloan

Kainos chief executive Russell Sloan said the weaker performance in digital services reflected the fact that "all the revenues and budget associated with Covid 19 are now gone".

He said this was also due to more cautious spending by financial services clients.

He said the firm's healthcare revenues were now twice what they were before the pandemic and the expectation was that they would continue to grow in the near to medium term.

The company said revenue growth was strong in both its Workday consulting and product businesses with year-on-year growth of 18% and 28%, respectively.

• Belfast IT firm Kainos to invest £10m in AI

Kainos is pressing ahead with plans for a new HQ building in Belfast city centre.

Mr Sloan said the planning application was submitted last week and the expectation was that a planning decision would be made by late summer, next year.