Shares in Kainos Group PLC (LSE:KNOS) climbed over 5% to 670.8p, having recently fallen to almost a five-year low, as the IT products and services provider reassured with a year-end trading update.
The FTSE 250-listed group said it had enjoyed a "solid" performance in its fourth quarter to 31 March, "underpinned by a disciplined approach to costs" and the board expects that revenues and adjusted profit before tax will be in line with consensus forecasts.
As of the most recent forecasts, City analysts were expecting revenue of £365.6 million and adjusted PBT of £65.4 million, following profit warnings in September and October, where the company cited slow decision-making from public sector clients.
Kainos said its recent government contract awards included one of £18.8 million with NHS Business Services in January and another of £14.3 million last Thursday.
The Workday Services arm remained "subdued", as largely expected, while the Product division delivered "very strong" growth.
Analysts at Stifel said they were glad to see the UK government-exposed Digital Services division improve slightly in the second half, "indicating the declines of the recent past could be reversing as we approach the full Spending Review due in June, when longer term UK government spending plans should be put into place and be of benefit to Kainos, in our view".