Kainos Shares Slide as 2025 Profit Declines, Announces £30m Share Buyback

Kainos (LON: KNOS) shares declined on Monday after the IT services provider reported a 15% drop in adjusted pre-tax profit to £65.6 million for the year ended 31 March 2025. 

Revenue declined 4% to £367.2 million, while statutory profit before tax fell 25% to £48.6 million.

The group cited a tough trading environment across its Digital Services division, where customers delayed spending and competition intensified. Bookings fell 10% to £382.4 million.

Despite the weaker performance, the company announced a new £30 million share buyback to be executed over the next six months, having completed a previous £30 million programme earlier this month. Kainos also increased its total dividend per share by 4% to 28.4p.

Kainos reduced its global workforce by 7% in March, incurring £8.4 million in restructuring costs. 

The company expects to reinvest two-thirds of the estimated £19 million in savings into product development, AI, data, and new partnerships.

The firm said Workday Products remained a bright spot, with revenue up 24% and annual recurring revenue growing 20% to £72.6 million. 

“Our results reflect a mixed year for Kainos, with strong growth in Workday Products and in our healthcare sector, set against broader market challenges in IT services – particularly in Workday Services and in the public and commercial sectors of Digital Services,” said CEO Brendan Mooney.

“We are excited about the opportunity for our Workday Products division,” he added.

Looking ahead, Kainos said it is confident in digital transformation demand but maintains a cautious outlook due to macroeconomic uncertainty. The firm expects significant progress towards its ARR milestones of £100 million in 2026 and £200 million in 2030.

Kainos shares are down over 4% in early trading.