Mounting demand among healthcare providers and government agencies to cut costs and improve efficiency fuelled strong growth at Kainos (KNOS) in the reported period. The software and IT company posted gains across its business, driving adjusted operating profits up 15 per cent to £13.5m.
Kainos, which floated its shares in July 2015, has targeted widespread interest in paperless systems. It worked with customers including Aviva (AV.), the Office for National Statistics and the National Assembly for Wales, driving sales up 11 per cent in its major division, digital services.
Turnover more than doubled in its healthcare software business as it signed up four new Acute Trusts, including Western Sussex and Queen Victoria Hospital. That reflected strong demand to digitise, store and transfer patient records, as well as the launch of a cloud-based, integrated care platform. And revenues jumped a tenth in the smallest division, WorkSmart, which provides consulting, support and testing services to users of Workday's (US:WDAY) financial management and human resources software. Indeed, its Kainos Smart automated testing tool attracted 35 Workday users, including Netflix (US:NFLX) and Shire Pharmaceuticals (SHP).
Broker Investec expects adjusted pre-tax profits of £14.2m for the year to March 2017, giving EPS of 10p (from £14.1m and 10.5p in FY2016).
| KAINOS (KNOS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 188p | MARKET VALUE: | £222m | |
| TOUCH: | 187.8-188.3p | 12-MONTH HIGH: | 299p | LOW: 167p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 22p | NET CASH: | £15m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 29.9 | 3.7 | na | na |
| 2014 | 41.9 | 7.1 | na | na |
| 2015 (restated) | 60.8 | 11.8 | 8.9 | na |
| 2016† | 76.6 | 14.3 | 10.7 | 4.20 |
| % change | +26 | +20 | +20 | - |
Ex-div: 29 Sep Payment: 21 Oct †Kainos listed its shares in Jul 2015 | ||||
