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Investing.com -- Kainos Group PLC (LON:KNOS) shares surged over 19% on Monday after the firm lifted its full-year revenue outlook, citing stronger-than-expected first-half sales.
The UK-headquartered company said adjusted profit before tax is expected to be in line with consensus estimates of £65.1 million to £74.7 million, against revenue estimates of £393.4 million.
The update builds on strong performance in the final quarter of the prior financial year.
Growth was reported across its three divisions. The Workday Products business passed a revenue milestone in July and is preparing to launch a new product, Pay Transparency, in the third quarter to help customers comply with the European Union’s Pay Transparency Directive, which takes effect in June 2026.
Digital Services secured several large programs in the public sector, including contracts with the Home Office, NHS England and the Driver and Vehicle Standards Agency.
The IT services provider said these are expected to deliver meaningful revenue increases in the second half of the financial year.
North American revenue grew, while activity in the commercial sector was below the prior year.
The Workday Services division recorded strong sales, supported by improved results in core European and North American markets, as well as growth in Australia, New Zealand and Mexico.
Kainos said it is adding staff and using contractors to meet demand and support its pipeline. It said its backlog, sales pipeline, balance sheet and cash flow remain strong.
“Although the macro-economic environment has improved, volatility persists, and we continue to balance growth, international expansion, investment and profitability against this backdrop,” the company said in a statement.