Kainos (LON: KNOS) share price opened about 3% higher this morning after the company said it witnessed continued strong demand for its services
The company also said it managed to double its half-year profits driven by a rapidly soaring healthcare unit amid the Covid-19 pandemic.
Pre-tax profit was reported at £24 million for six months ending September 31, compared to a profit of £12 million posted a year ago as revenue surged 23% to £107.2 million.
As a result, the software firm declared an interim dividend of 6.4p a share, which represents an increase of 83%. Cash balance at the end of the reporting period was reported at £62 million.
Gross margin also increased to 52.1% from 46.5% as lockdown facilitated lower expenditures on some cost categories.
“While Covid-19 uncertainty remains a feature, it is clearly not derailing the company’s extraordinary progress. Indeed, in our view Kainos remains a high-quality and relatively ‘Covid secure’ company exhibiting ample operational and financial resilience,” Shore Capital analysts wrote in a note.
Kainos share price opened higher this morning but it now trades at 1184p, or 0.31% in the red as the buyers have failed to hold onto gains.
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