Kainos Group (LON:KNOS) Full Year 2024 Results

Key Financial Results

• Revenue: UK￡382.4m (up 2.0% from FY 2023).

• Net income: UK￡48.7m (up 17% from FY 2023).

• Profit margin: 13% (up from 11% in FY 2023).

• EPS: UK￡0.39 (up from UK￡0.34 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Kainos Group EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 1.0%.

The primary driver behind last 12 months revenue was the Digital Services segment contributing a total revenue of UK￡213.1m (56% of total revenue). Notably, cost of sales worth UK￡195.1m amounted to 51% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK￡128.1m (92% of total expenses). Explore how KNOS's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the IT industry in the United Kingdom.

Performance of the British IT industry.

The company's shares are up 15% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Kainos Group, and understanding this should be part of your investment process.

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