Kainos Group PLC (LSE:KNOS) shares jumped after the software company reported improved underlying profits and contracted backlog.
Revenue for the year to end-March of £302.6mln was up 29%, marking 12th consecutive year of growth, but the IT group cut dividend despite "robust underlying market demand."
The dividend was cut to 22.2p per share for 2022, from 28.2p in 2021.
Pre-tax profit rose 3% to £58.8mln as margins moderated following increased investment “and the further normalisation of costs”, though statutory pre-tax profit dropped 9% to £46mln.
Bookings were up 35% to £349.8mln at the company, with 26% contracted backlog growth to £259.7mln.
"Our latest business results outline the consistency of our long-term performance, as we recorded our twelfth consecutive year of growth - in terms of people, customers, revenue and profitability," said chief executive Brendan Mooney.
The company provides digital technology services and platforms to customers that include the National Health Service (NHS), having been spun out company from Queen’s University Belfast.
Shares were up 21% to 1,253p by mid-morning, having fallen to over a year's low.