Kainos sees revenue below forecasts as clients delay decisions

(Sharecast News) - IT provider Kainos said it expected full-year revenues to be below market forecasts due to the tougher trading environment in services as clients delayed decisions on projects, but adjusted pre-tax profit would be in line with consensus estimates. The consensus revenue and profit figures are £415.5m and £79.1m respectively. Full-year 2024 reported revenue was £382.4m.

Kainos on Monday said digital services had seen sustained demand from public sector clients "offset by some delays around project mobilisation as result of the short-term impact of the UK General Election", while healthcare revenues continued to grow, but "weakness in demand within our commercial clients continues as project related expenditure decision making is delayed".

"Overall, there has been a subdued start to the year but expect to see revenue growth over the remainder of this year."

Reporting by Frank Prenesti for Sharecast.com