Kainos Group (LSE:KNOS) told investors it expects to reach £100m of annual recurring revenue in its Workday Products division by the end of 2026 after reporting revenue for the year ended 31 March of £431.1m, up 17% from £367.2m.
The UK‑headquartered IT provider, split across Digital Services, Workday Services and Workday Products, reported adjusted pre‑tax profit of £67.1m for the year ended 31 March, up 2% year‑on‑year, with adjusted profit margin down to 16% (2025: 18%).
"Workday Products remains a key growth driver; we are on track to surpass £100 million of ARR by the end of 2026 and reach £200 million of ARR by 2030," said CEO Brendan Mooney.
Management said higher contractor and third‑party costs, the first full year of Built on Workday investment, increased National Insurance and elevated bonuses pressured margins, while cash conversion was 99% and year‑end cash was £89.1m after returning £55.7m through buybacks and other uses.
Bookings rose 32% to £505.3m and contracted backlog increased 18% to £433.9m at 31 March.
Workday Products revenue rose 15% to £81.7m with ARR at £89m, Digital Services grew 23% to £241.7m with healthcare up 55% while commercial fell 41%, and Workday Services returned to growth with revenue up 9% to £107.6m and bookings up 44%.
For FY27 the group expects continued momentum in Workday Products including the £100m ARR target, further growth in Digital Services led by public sector and healthcare and another positive year for Workday Services.
