Britain's Kainos Jumps on Upbeat Annual Outlook

Britain's Kainos jumps on upbeat annual outlook

(Reuters) -Shares of Kainos jumped more than 16% on Monday after the IT software developer said it was expecting its annual outlook to be at the upper end of consensus forecasts, helped by sturdy sales in the last five months.

The British company is expected to post 385 million pounds ($520.10 million) in revenue and 66.4 million pounds in pre-tax profit for the year ending March 31, 2026, according to a consensus it provided.

Its shares rose to as much as 825.5 pence apiece by 0801 GMT and were leading the FTSE mid cap index.

Kainos, a partner of U.S. software firm Workday, said its Workday products division — which builds applications used within the platform — continued to grow and passed the $100 million annual recurring revenue milestone in July.

The company operates in markets boosted by the growing use of artificial intelligence, which helped drive search, cloud and advertising revenues at Microsoft, Alphabet and Meta in the June quarter.

Kainos said momentum was picking up across its divisions, with new projects prompting it to hire more staff and make greater short-term use of contractors.

($1 = 0.7402 pounds)

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)