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Kainos Share Price Slides Despite Pre-Tax Profit Increase

Sam Boughedda trader
Updated 15 Nov 2021

Kainos (LON: KNOS) shares have plunged Monday after the company announced its results for the six months ended 30 September.

The IT services provider announced a pre-tax profit of £24.8 million for the first half, with revenue coming in at £142.3 million. The adjusted pre-tax profit was £29.2 million. 

The numbers reported were above the same period last year where it recorded a pre-tax profit of £24 million and revenue of £107.2 million.

Also Read: The Best UK Tech Stocks to Buy

Its strong revenue growth was driven by its digital transformation programmes in the public sector, healthcare, and commercial sectors.

In reaction to the report, Kaino's share price has plunged 7% to 1,908p.

Brendan Mooney, CEO of Kainos, remarked: “We have remained focused as a business, maintaining our high levels of customer satisfaction and employee engagement; while simultaneously delivering record levels of sales, revenue, adjusted pre-tax profit and cash.”

Looking ahead, Kainos is confident, stating that that demand for all of its services will remain high as the pandemic has accelerated the move towards greater digitisation.

Meanwhile, over the medium-term, Kainos said it remains well-placed to deliver further growth.

In addition, the board declared an interim dividend of 7.1p.

Should you invest in Kainos shares?

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.