Erstwhile ‘Little British Battler’ Kainos has confirmed its record revenue and profit growth in the year to end of March ‘13. The application development and management specialist reports a 17% increase in turnover to £29.7m – that’s up from £25.4m in FY12 and £17m in FY11 - and a 75% improvement in profits to £3.5m (FY12: £2.0m). It’s also paying its maiden dividend after just 26 years in business!
As presaged in our recent CompanyViews report on Kainos (see here if you’re an eligible TechMarketView subscriber), the growth has been spurred by its work with the UK public sector, its partnership with global SaaS player Workday, and the success of its electronic medical record product Evolve in the UK NHS.
Central government has proven a particularly rich hunting ground for Kainos since it began working with the Government Digital Service in March 2012. It has benefited from the Government’s pro-SME stance winning 10 projects in central government helping to deliver the 'Digital by Default' agenda. As a result, the public sector accounts for around £6.5m of Kainos' FY13 turnover, up from £5.3m the year before (see Kainos: Healthcare & public sector fuel growth spurt for more analysis).
Against this backdrop, Managing Director Brendan Mooney is confident of further significant growth in the coming year. Indeed, having outgrown its LBB status Kainos has now set its sights on becoming ‘Boring’ in the best sense of the word – I’m sure we won’t be the only ones following its progress closely to see whether it can attain that coveted accolade!