Kainos Group PLC (LON: KNOS) have completed two new merger deals, as announced on Monday morning to boost its European and UK operations.
The Belfast based firm also reported that it has seen rises in revenue in their most recent quarterly update, which have caused shares to jump.
Shares spiked 3.63% on Monday morning, trading at 530p. 11/11/19 11:10BST.
Kainos said its revenue in the six months to September 30 rose by 29% year-on-year to £86.9 million from £67.2 million.
Pretax profit was 38% higher at £12.0 million from £8.7 million last year. On an adjusted basis, excluding “share-based payments and related costs”, the profit growth was more modest at 27% year-on-year to £12.8 million from £10.1 million.
The FTSE250 (INDEXFTSE: MCX) listed firm boosted its interim dividend by 25% to 3.5 pence per share, from 2.8p last year, which will please investors.
Revenue in its core Digital Services segment grew by 29% to £73.7 million from £57.3 million last year.
The division, which provides “full lifecycle development and support of customised digital services”, has the UK government as one its largest customers. In May, Kainos said the unit could be hampered by Brexit uncertainty and a general election.
Kainos added: “This guidance remains valid, with government departments continuing with existing programmes, serving as a reminder that even in uncertain times, the business of government does not stop. Some departments are opting to defer some new programmes until they obtain greater clarity around spending plans, including those relating to the preparation for European Union exit.”
The company said: “The on-going funding constraints within the NHS continue to create a headwind for Evolve within the UK, although significant new projects are underway in Dublin and Gibraltar.”
Kainos also said that it has acquired Formulate Ltd, a technology consultancy firm based in Worcestershire in the west Midlands, England. It has also bought the Adaptive Insights arm of Implexa GmbH.
Kainos said: “Implexa is the only accredited Adaptive Insights partner in Germany, and adds Hamburg-based software and consulting capabilities to Kainos’ existing Frankfurt presence and capabilities.”
Chief Executive Brendan Mooney added: “I am delighted to welcome the Formulate and Implexa teams to Kainos. The quality and unique expertise of the teams, paired with their complementary values, were integral in our decision to make these acquisitions.
In the industry, Avast (LON: AVST) and Intel (NASDAQ: INTC) have been through a period of strong trading, which will make the results even sweeter for Kainos.
At a time in the software industry where technology is changing daily, this will be pleasing for investors of Kainos.