Kainos Group Plc · LSE:KNOS
Kainos — FY2025 Earnings Presentation
28 slides from Kainos's earnings presentation, May 19, 2025
Slide 1: Full Year Results
Full Year Results 12 months ended 31st March 2025 Brendan Mooney (CEO) Richard McCann (CFO) 19 May 2025
Slide 2: Safe harbour statement
Safe harbour 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, indebtedness, finan
Slide 3: Contents
Contents 1. Business Overview 2. Financial Performance 3. Divisional Performance 4. Looking Ahead 5. Q&A For more information visit kainos.com/investor-relations 3
Slide 4: Business Overview
Business Overview kaines’
Slide 5: We have excellent positions in long-term, growing markets
Business Overview We have excellent positions in long-term, growing markets MARKET CAGR MARKET CAGR MARKET CAGR £3.3b 5% £1.4b 19% £1.6b 31% £162m £200m £224m £213m £197m £49m £71m £106m £112m £99m £24m £32m £45m £57m £71m FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Di
Slide 6: Expertise at a Global Scale
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Slide 7: FY25 Highlights
FY25 Highlights Results in line with revised guidance, Workday very strong Workday Products growth Products +24% offset by subdued services markets FY25: £71m FY24: £57m • Improved performance in Q4 • AI revenues up 61%, now 21% as services return to growth of Digital Services revenue Revenue(1) Dig
Slide 8: Our Customers
Our Customers Delivering value to our clients drives long-term relationships New Client Revenue Healthcare Sector Rev enue Cent ral Europe (1 ) Revenue Existing Client Revenue Public Sector Revenue North America Rev enue £37m £37m Commercial Revenue £44m £50m £51m £35m £68m £43m £35m £37m £68m £35m
Slide 9: Our People
Our People We are building an exceptionally talented and engaged workforce Inclusion through learning, Birmingham Inspiring the next generation, Argentina Health and wellbeing, London People 20 Global Locations Engagement 2,865 93% Employee Retention 75% Peakon Employee FY21 2,024 engagement score F
Slide 10: Our Responsibilities
Our Responsibilities Being responsible towards our people, customers, communities and planet … Climate action volunteering, Toronto Empowering women in technology Supporting 375 young people at CodeCamp Climate Action Gender Equality Quality Education Reducing our Promoting gender equity, Increasing
Slide 11: Financial Performance
Financial Performance kaines’
Slide 12: Group Income Statement
Group Income Statement Digital Services: • Public and commercial revenue impacted by market conditions Income Statement • Public -9%, Commercial -32% • Healthcare +14% reflective of increased activity in UK healthcare sector £m FY 25 FY 24 Change • Gross margin decreased to 36.4% (FY 24: 38.4%) • Im
Slide 13: Balance Sheet and Cashflow
Balance Sheet and Cashflow Balance Sheet: Balance Sheet • Fixed assets and investments – land for office £5.1m (FY24: £10.3m), sale completed (£m) 31 Mar 25 31 Mar 24 • Goodwill & intangible - mainly exchange rate fluctuations £1.0m Fixed assets and investments 18.2 25.0 • Underlying trade receivabl
Slide 14: Capital allocation strategy
Capital allocation strategy Growing the Maintaining a Progressive Returning surplus business robust balance dividend policy cash to sheet shareholders • Organically • Cash reserves - Total dividend 28.4p • Share buyback: • Targeted £133.7m (FY 24: 27.3p) £30m to 9 May acquisition • Debt free • Furth
Slide 15: Divisional Performance
Divisional Performance kaines’
Slide 16: Workday Products
Workday Products Very strong growth driven by excellent sales performance Revenue (1) ARR (2) Backlog across the full product portfolio; +24% +20% +17% Built on Workday partnership FY25: £71m FY24: £57m FY25: £73m FY24: £61m FY25: £149m FY24: £128m supporting growth trajectory Revenue trend H1 / H2
Slide 17: Built on Workday
Built on Workday Strategic partnership to co-sell Kainos products Our products are marketed and sold via Workday’s Marketplace Annual Investment: $10m from August 2024 Workday sellers incentivised to sell our products Towards the end of the mobilisation phase Key focus: Workday influenced deals Work
Slide 18: Kainos Smart transforms compliance and efficiency
Kainos Smart transforms compliance and efficiency “Automation has allowed us to do more with less. We’ve been able to accelerate updates, manage risks proactively, and focus on strategic priorities.” Julie Barnett | Associate Vice President of Enterprise Business Solutions University of Oklahoma Hea
Slide 19: Workday Services
Workday Services Increased competition Revenue(1) Bookings Backlog impacted performance, but outlook improving and -12% -27% -19% regional expansion FY25: £99m FY25: £85m FY25: £59m FY24: £112m FY24: £117m FY24: £73m underway Revenue trend H1 / H2 CAGR(2) Revenue reduction / -12% to £99m 19% FY21 £2
Slide 20: High growth STARK Group streamlines HR for 20,000 employees
High growth STARK Group streamlines HR for 20,000 employees “In our journey with Workday HCM … Kainos plays a crucial role as our implementation and support partner. This collaboration has ensured that our ambitious projects stayed on track.” Heidi Ethelberg| Group Head of HR Operations, STARK Group
Slide 21: Digital Services
Digital Services Strong growth in Revenue(1) Backlog Bookings Healthcare, softer -7% -11% +2% demand elsewhere; FY25: £197m FY25: £202m FY25: £160m Q4 shows improvement FY24: £213m FY24: £228m FY24: £157m Public sector / -9% to £126m Revenue trend H1/H2 CAGR(2) Moving past UK General Election impact
Slide 22: Nova Scotia improves access to healthcare with digital innovation
Nova Scotia improves access to healthcare with digital innovation “When we started, the digital estate was a spiderweb. I’ve been thrilled with the level of expertise, and the partnership has been phenomenal. We basically made the impossible possible.” Scott McKenna| Chief Information Officer Formed
Slide 23: AI business continues to gain momentum
AI business continues to gain momentum Solving customer challenges Driving AI Sales Growth Secured 88 new projects during the year Preventing travel document fraud, illegal immigration and modern AI-related revenue growth of 61% to £41m and is slavery. now 21% of Digital Services revenue Since 2018,
Slide 24: Looking Ahead
Looking Ahead
Slide 25: Outlook
Outlook We have strong positions in growing, diverse, international markets Digital Services Workday Services Workday Products Immediate Immediate Continue strong execution towards Compete more effectively as UK Compete more effectively in our core £100m and £200m ARR targets public sector market im
Slide 26: Appendix: Definition of terms
Appendix: Definition of terms
Slide 27: Definition of terms
Definition of terms Active customer: a customer who has signed a contract with us within the last three Contracted backlog: the value of contracted revenue that has yet to be recognised. months or has generated revenue in the last six months. Compound annual growth rate (CAGR): annual growth rate ov
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