vendredi 19 mai 2017

Kainos Group a software firm you can trust?

Kainos Group has been listed on the market for two years at £1.35 per share. Now trading around £2.60 per share. The listing has made 9 millionaires for the owners and senior managers.

Looking towards their next report (end of May), they haven't given much detail away (apart from saying they are trading in-line with expectations), but might have let something in their latest trading update. That is Kainos has recruited 216 new staff since April 2016, which is a 25% increase. From my research, I have evaluated the revenue per staff growing from £81k to £104k in three years. Similarly, profit per staff rose from £10k to £19k.
So, using conservative estimates of £105,000 sales per staff and £20k profit per staff, then my forecast for Kainos Group’s 2017 is:
A. An approximate revenue of £102m from £76.6m;
B. And operating profit close to £20m from £14.2m.
These are impressive estimates and we will see by the end of this month.


Kainos Group a software firm you can trust?

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