Kainos Group Plc · LSE:KNOS
Kainos — H1 FY21 Earnings Presentation
22 slides from Kainos's earnings presentation, Nov 16, 2020
Slide 1: Interim Results
Interim Results 6 months ended 30th September 2020 Brendan Mooney (CEO) and Richard McCann (CFO) 16 November 2020
Slide 2: Highlights
Highlights Very strong performance in the first six months of FY21. Very strong performance against a backdrop of the Covid-19 pandemic. REVENUE(1) +23% • Revenue, profit and bookings all showing growth. £107m Revenue diversification continues. ADJUSTED PROFIT(2) +104% £26m • International revenues
Slide 3: Our Covid-19 Response
Our Covid-19 Response. Ensuring the wellbeing of our colleagues and supporting our customers. Invoked response plan, placing our people in the safest environment. A confident outlook as 5th • Implemented home working for 1,700 people in seamless fashion. 16th digital adoption accelerates March Novem
Slide 4: Group Overview
Group Overview. Long-term, strong revenue growth trends in both Digital Services and our Workday Practice. DIGITAL SERVICES WORKDAY PRACTICE £117m £123m £56m £68m £69m £75m £34m £22m £15m £9m FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 • The full lifecycle development and support of • We are o
Slide 5: Our People
Our People. We continue to build an exceptionally talented and engaged workforce. PEOPLE +11% COMMENTARY GLOBAL LOCATIONS 1,729 Increased presence across all regions. • UK & Ireland: 1,277 (+96). 342 110 With people based in 15 countries, we • Central Europe: 342 (+8). GROWTH TREND 1,277 are growing
Slide 6: Our Customers
Our Customers. Delivering value to our clients drives long-term relationships. REVENUE BY CUSTOMER TYPE CUSTOMER RETENTION Recurring Customers £24m New client acquisition unlocks Repeat Customers New Customers £18m multi-year revenue streams. £24m Revenue from clients acquired pre-FY15 Revenue from
Slide 7: Business Balance
Business Balance. We have made excellent progress in building balance into our revenue streams. GROUP REVENUES BY SECTOR GROUP INTERNATIONAL REVENUES (1) Public Sector £23m Rest of World Commercial Sector Central Europe Healthcare sector North America £21m £18m £63m £40m £19m £9m £15m £14m £11m £28m
Slide 8: Divisional Performance
Divisional Performance
Slide 9: Digital Services
Digital Services. Strong revenue growth and sales execution, driving exceptional backlog growth REVENUE +16% COMMENTARY MARKET SIZE Strong performance delivered during Covid-19. • Revenue, bookings and backlog all growing. £1,431m £117m £123m • Customers becoming accustomed to remote sales UK PUBLIC
Slide 10: Digital Services: Customer Stories
Digital Services: Customer Stories. We have established a clear reputation for delivering value, at scale and at pace. DRIVER EXAMINER SERVICE CUSTOMERS c. 2 million tests Licence now issued conducted annually. in 3 days (vs 3 weeks). 1,900 Driving Examiners Reduced costs, across 400 Test Centres. i
Slide 11: Workday Practice
Workday Practice. A very strong revenue performance and a confident outlook. REVENUE +41% COMMENTARY CUSTOMERS Strong revenue growth, up 41% to £36m (H1 20: £25m). • Slower decision-making in the first weeks of the £56m pandemic impacted sales closure; current activity £34m £36m £15m £22m levels ret
Slide 12: Workday Services
Workday Services. We are one of the most experienced participants in the Workday partner ecosystem. REVENUE +41% COMMENTARY ADDRESSABLE MARKET Strong revenue growth of 41% to £24m (H1 20: £17m). • Deal closure impacted in early stages of pandemic. £400m £37m GLOBAL SERVICES MARKET (1) £23m £24m • St
Slide 13: Smart for Workday
Smart for Workday. Smart is the leading automated testing platform for Workday. REVENUE +40% COMMENTARY ADDRESSABLE MARKET Strong revenue growth, up 40% to £12m (H1 20: £9m). £338m SAAS Subscriptions £4m SAAS Services • Deal closure impacted in early stages of pandemic. £2m • Annual Recurring Revenu
Slide 14: Workday Practice: Customer Stories
Workday Practice: Customer Stories. We are trusted by our customers to launch, test, expand and safeguard their Workday system. EMC INSURANCE PHARMAVITE BLACKBERRY EVERTON FC Top 60 US insurance Dietary supplements Multinational Leading English provider. producer. software company. football club. 2,
Slide 15: Financial Performance
Financial Performance
Slide 16: Income Statement
Income Statement Digital Services: INCOME STATEMENT • Revenue growth various by sector. HY £m H1 21 H1 20 FY 20 Change • Public: 9%. • Commercial: (15%). Digital Services 71.4 61.5 122.5 16% • Healthcare: 75%. Workday Practice 35.8 25.4 56.3 41% • Gross Margin increased by 7%. Revenue 107.2 86.9 178
Slide 17: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: BALANCE SHEET • Fixed assets and investments. As at 30 September (£m) H1 21 H1 20 Fixed assets and investments 14.6 16.0 • IT, office equipment etc. - £2.4m (H1 20: £2.7m). Goodwill and intangible assets 6.9 - • Trade receivables/WIP improvement - 58 days Re
Slide 18: Looking Ahead
Looking Ahead
Slide 19: Growth Drivers
Growth Drivers With positive end markets, our next phase of growth is all about execution. UK UK PUBLIC DIGITAL SERVICES SECTOR COMMERCIAL INTERNATIONAL SECTOR WORKDAY INC SMART CLIENT GEOGRAPHIC WORKDAY SERVICES GROWTH CONVERSION EXPANSION US PRESENCE WORKDAY INC SMART MARKET ADDITIONAL SMART CLIEN
Slide 20: Appendix
Appendix
Slide 21: Financial Summary
Financial Summary. An established track record of high growth, high margin performance. We remain on track to deliver our eleventh consecutive year of revenue and REVENUE adjusted pre-tax profit growth. £180m H1 Revenue H2 Revenue £92m Five-year (2016-2020) revenue CAGR of 24%. £120m £84m £43m £55m
Slide 22: Legal and Confidentiality Statement
Legal and Confidentiality Statement This document contains statements about Kainos Group plc that are or may be forward-looking statements. Forward-looking statements include statements relating to (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebt