FTSE 250 constituent Kainos plc has seen its share price rocket by 20% in a day after it announced that it expected revenues at the higher end of forecasts.
The Belfast-based IT provider, which has expertise across three divisions – digital services, workday services and workday products – issued a trading update today which confirmed that it had experienced stronger sales than initially expected.
The forecasts are £378m – £393.4m for revenue and adjusted PBT of £65.1m – £74.7m.
It says the sales success is creating opportunities for further operating progress during the rest of the financial year and the firm is now recruiting additional staff as well as increasing the use of contractors.
The company’s workday products division passed $100m ARR in January and is now working with partners including Diageo and Linklaters on its Pay Transparency product, which will launch in the third quarter of its financial year.
Meanwhile, its digital services arm has secured several significant programmes in both healthcare and the public sector, including contracts in the Home Office, NHS England and the Driver and Vehicle Standards Agency.
It also predicts that its workday services division will result in a return to growth during the year, driven by improved results in European and North American markets as well as further progress in Australia, New Zealand and Mexico.
Despite the share price increase from 708p on Friday to 855p at 2pm today, the company has made clear that ‘volatility persists’ and it is ‘continuing to balance growth, international expansion, investment and profitability against this backdrop’.
Its market cap has now reached £1bn and the business will release its results for the six months ending 30th September 2025 this November.