Business

Boss heralds 'committed staff' as IT firm Kainos posts 33 per cent sales increase

Kainos has seen its first-half sales soar by 33 per cent to £142 million
Gary McDonald Business Editor

THE boss of Belfast digital services group Kainos has heralded his "committed workforce" as the firm emerges from the worst of the pandemic in rude financial health.

In the first half of its financial year, Kainos saw turnover soar by 33 per cent from £107 million to £142 million, while pre-tax profit rose 12 per cent from £26m to £29m, and the firm is now worth in the region of £2.5 billion.

And chief executive Brendan Mooney praised his staff, local and international, for their contribution to making Kainos the global force it it today.

“For the past 18 months we have been physically distant from our colleagues and customers, but we have worked seamlessly together to deliver critical systems,” he said.

Alongside its stellar business performance, Kainos reported "strong recruitment", with staff numbers increasing by 41 per cent to 2,438 (from 1,729 this time last year), and with employee retention sitting at 89 per cent.

"Technical talent is in high demand across the world, and people still want to work for Kainos, and we have continued to retain our ‘Top 100 Best Companies to Work For' accreditation," he said.

The company added more than 90 staff via the acquisitions of of Cloudator (Europe) and Une Consulting (Argentina), and recruited another 600 over the period (from a pool of some 21,000 applications).

Kainos - which specialises in helping organisations to digitise their operations - has made progress in efforts to increase the proportion of work it does internationally and for private sector customers.

Mr Mooney said: “At the time of our IPO, we did around £1 million of international business. Today that is £40 million. So we've very much gone global.”

Kainos - which admits to being some way off moving to its new Belfast headquarters (it bought the Movie House cinema on the Dublin Road last year) - says it expects to see "further strong future growth" and has a £250m backlog of work.

Broken down by sector within the business, the company's digital services division delivered significant digital transformation programmes across the public sector, healthcare and in the commercial sector, bringing in revenues of £94.2m.

Its Workday practice grew strongly in North America and contributed £48.1m while Smart product revenues were up 22 per cent at £14.4m

Kainos's focus on sector diversification has ensured that it built a robust and well-balanced business across sector and region, with its overall revenues split 42 per cent for commercial, 37 per cent public sector and 21 per cent healthcare.

“While the economy is not yet free of the impacts of Covid-19, our robust pipeline, significant contracted backlog, long-term customer relationships and talented colleagues allow us to be confident in our outlook for both the current financial year and future periods,” Mr Mooney said.

“We have remained focused as a business, maintaining our high levels of customer satisfaction and employee engagement; while simultaneously delivering record levels of sales, revenue, adjusted pre-tax profit and cash.

“Our performance has only been possible because of the trust and support of our customers and the talents and hard work of our colleagues. Once again, we have a deep sense of gratitude towards our colleagues and our clients.”

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