Kainos Group PLC (LON:KNOS) said it continues its plan to expand after posting stellar full-year results, as organisations stepped up their digital efforts during the pandemic.
The FTSE 250 software provider said its early-stage investments are already contributing significant additional revenue streams, while its international expansion is increasing market size, both in the Workday Practice and Digital Services divisions.
The Workday Practice segment is expected to continue gaining market share as it is forecast to reach US$10bn revenue in the next five years, from around US$4bn today.
Its main competitors are Oracle and SAP, which have been in the enterprise resource planning (ERP) market for 50 years.
Kainos provides software for Workday Inc's Finance, HR and Planning divisions.
The Digital Services segment, mostly focused on the UK, is now expanding in Canada, Germany and Switzerland.
Kainos said it remains positive about the future of digitisation in the UK public sector and within the NHS where it would maintain “a central role”.
In the year to 31 March, revenue climbed 31% to £234mln, with statutory profit before tax rocketing 117% to £50mln. Cash at year-end was £80mln and the group proposed a total dividend of 28.2p, up 706% from last year.
"While COVID-19 uncertainty remains a feature, it is clearly not derailing the company’s extraordinary progress – not even close. Indeed, we’d reiterate that Kainos remains a high-quality and ‘COVID secure’ company exhibiting ample operational and financial resilience," analysts at Shore Capital commented.
Shares rose 3% to 1,453.46p on Monday at the opening bell.
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