Shares in Kainos (KNOS) jumped up by nearly a fifth in morning trading, as the IT provider said that it expects revenue and adjusted profits to beat forecasts for its full year to March 2021. And shareholders were given an income boost when management revealed a 6.7p special dividend* (in lieu of the final dividend), and a reversion to the company's normal interim and final year dividend cycle.
Since the beginning of April, the company's trading has been led by continued demand from the NHS, and in its public sector and Workday segments. The company has also been supported by cost savings through its recruitment freeze, as well as lower travel spend.
Kainos still has no debt and has grown its cash pile to more than £62m, up from £40.8m at the end of its 2020 financial year in March.
It has withdrawn from the government’s furlough scheme, which it had used to support 131 members of its staff. But looking ahead, management believes that it is still too early to predict the impact that coronavirus will have on its customers.
- To be paid on 4 September 2020 to shareholders on the register as at the close of business on 7 August 2020 with an ex-div date of 6 August 2020.