Kainos Group PLC (LSE:KNOS) shares surged 16% on Monday after the IT services group said annual revenues were likely to come in at the top end of forecasts, driven by a stronger-than-expected first half.
The London-listed company, which specialises in digital transformation and Workday software services, said sales momentum had picked up across all three of its divisions. Adjusted pre-tax profit is expected to be in line with market expectations.
Kainos highlighted milestone progress in its Workday Products unit, which has now passed $100 million in annual recurring revenue.
It is preparing to launch a new pay transparency product in the autumn, developed with clients including Diageo and Linklaters, ahead of new EU rules.
Major contracts were also secured with NHS England, the Home Office and the Driver and Vehicle Standards Agency.
The group said it remained cautious given ongoing economic volatility but pointed to a strong pipeline, healthy balance sheet and long-term demand for digital and AI-related services.
The shares rose 113.41p to 820.41p.