London-listed software provider Kainos has downgraded its revenue forecast for 2025 after a subdued start to the year and more aggressive pricing among its partners.
Management said it expected adjusted pre-tax profit to perform in line with the current analyst consensus of £79.1m for the year ending 31 March 2025.
Due to a “tougher trading environment in services” this year, however, the IT firm is likely only to report a small rise in overall revenue next year, which will drop below the current market consensus forecast of £415.5m.
Kainos has forecast its revenue range between £408.9m and £422m. For the full year 2024, the company that is a key NHS supplier reported revenue of £382.4m following strong demand from public sector clients.
But, in April, it warned of cooler demand from commercial clients and slow recovery from healthcare sales following a peak during the Covid-19 pandemic.
Kainos said the win rate in its Workday Services division has “remained robust.”
Still, contract wins have fallen lower than in previous periods, and there has been “more aggressive pricing amongst partners”. It expects a return to growth in the second half of the year.
“Given the current macro-economic environment, the Board continues to believe that we are maintaining the appropriate balance between profitability, investment for future growth and international expansion,” Kainos said on Monday.
It will announce half year figures in November.