Yahoo Finance Kainos: Key NHS supplier warns of lower revenue amid shaky demand for software services
London-based software firm Kainos, a key NHS supplier, has said its full year revenue for 2023 will slip below forecasts as weak demand from commercial clients bites.
Kainos had projected revenue of £395.4m to £404.1m, while the analyst consensus revenue estimate was £400.7m.
It told markets this morning that pre-tax profit will remain in line with a consensus forecast of £76.3m, while its revenue will be “slightly below” the forecast.
Although it is yet to reveal the exact figures, the IT company said that the performance of its digital services division was hit by weakness in demand from commercial clients and slow recovery from healthcare sales following a peak during the Covid-19 pandemic.
The FTSE 250 company is involved in the UK’s National Health Service (NHS) digital transformation projects and looks set to benefit from an increase in spending on information technology by the NHS starting in the financial year 2025.
Kainos said its ‘workday products’ unit recorded “a very strong performance”, both in established products such as Smart Test, for automated testing, and in its Employee Document Management, which launched in September 2023. The latter has been the most successful product launch to date, the company said.
“We remain confident in our strategy,” said Kainos. “Our core markets have proven to be resilient and offer substantial further growth opportunities and we are well positioned within these markets, both locally and, increasingly, internationally.”
It will announce full year figures in May.
