Healthcare helps software group Kainos to double profits

Software group Kainos saw its profit more than double in the last year, boosted in no small part by its hospitals business.

The Belfast-based company said it had seen good growth at its healthcare division, which digitalises records of care providers, including hospitals.

The unit registered a 106% increase in revenue to £48.1 million, while overall revenue across the business jumped 31% to £234.7 million.

It helped pre-tax profit to hit £50.3 million in the 12 months to the end of March, up by 117% compared to a year earlier.

“For the past 15 months we have been physically distant from our colleagues and customers, but we have worked seamlessly together to deliver critical systems,” said the chief executive, Brendan Mooney.

“Our work has included supporting the NHS response to Covid-19 and ensuring that our government and commercial clients continued to provide essential services to citizens, customers and employees.”

Although the profit jump was big, it did not surprise the market as Kainos had in April told shareholders to expect something similar.

Shares had risen around 0.8% by the late morning on Monday.

“With the company moving from great in FY21 to greater in FY22, and given scope for a small bump to the near term revenue outlook, we’d expect a positive share price reaction this morning,” said Martin O’Sullivan, an analyst at Shore Capital Markets.

He added: “Kainos’ assessment of the outlook is largely unchanged versus the April trading update – confirming a robust pipeline and significant contracted backlog and citing significant programmes in partnership with the UK government and with leading commercial and healthcare clients.”