Kainos Share Discussion Threads

[irishlass2] 30/5/2017 20:45

Just something Someone said about being so busy organising it. Enough said!

[montyhedge] 30/5/2017 19:45

IrishRoad Show do you know when that is starting?

[irishlass2] 30/5/2017 19:23

It is a solid company with plenty of growth. Road show coming up to attract new institutions. Great plus is that we don't have to worry about any future fundraising.

[montyhedge] 30/5/2017 18:44

Shore and Cannacord reiterate BUY.I agree, lol

[montyhedge] 30/5/2017 18:43

Revenue up 9%, cash up 58%, dividend up 5%.Remember some punters would have sold today whatever they were, just bought for the figures.Long term investors 6 years growing revenue and profits. This will double coming years. One for the ISA, I have.

[valhamos] 30/5/2017 17:47

40% growth in the commercial sector is a good sign as well as progress in Europe. The outlook in the report is confident of further growth and the recent increase in headcount and staff costs should translate into higher contribution to the bottom line as there is usually a time lag before someone is fully up and running.

[gswredland] 30/5/2017 17:04

No matter how good things look this share can drop like a stone. Remember it went to near120 a year back. Frustrating

[montyhedge] 30/5/2017 16:50

Ok Frank you sold out, goodbye then.

[frankwhite] 30/5/2017 16:22

Who cares about revenues if margins and EPS is down! As a shareholder I care more about EPS than revenues. Cash pile is nice but what will they do with it other than a divi hike maybe. Even with that there's better growth stories out there that pay no divi and will perform much better than this.

[montyhedge] 30/5/2017 15:40

Frank
Ok goodbye, but its not ex growth thats a crazy thing to say.
Not with Revenue growing 9% and cash up 58%.

[frankwhite] 30/5/2017 14:57

The company is now on an ex-growth trajectory looking at the forecast EPS, PE should be a lot lower than it is currently, such a high PE can't be justified. I've sold out for now :)

hxxp://www.stockopedia.com/content/small-cap-value-report-tue-30-may-2017-fxi-knos-bltg-189649/

[shoee62] 30/5/2017 13:32

Kainos: Canaccord reiterates Buy with a target price of 290p

Kainos Group PLC (LON:KNOS)‘s stock had its “buy” rating restated by Shore Capital in a report released on Tuesday.

Cancocord and Investec are house brokers

hxxps://baseballnewssource.com/markets/kainos-group-plc-knos-earns-buy-rating-from-shore-capital/875951.html

hxxps://www.bibeypost.com/shore-capital-keeps-a-buy-rating-on-kainos-group-plc-lonknos-richardson-electronics-ltd-has-1-2-sentiment/

[montyhedge] 30/5/2017 13:03

Thought they would, cash cow, £23.7m in the bank, no debt, like it. May even have a special dividend next time, if they keep on accumulating cash like this.

[runthejoules] 30/5/2017 13:00

Monty, Canaccord have raised share price target to 290p hxxps://www.sharesmagazine.co.uk/news/shares/kainos-will-be-glad-to-see-back-of-general-election

[montyhedge] 30/5/2017 12:26

Could we finish up on the day ? Once you look more into the figures they are good.
The forward looking statement very encouraging.

I reckon analyst's once they go over these figures, I think targets will be raised.

[montyhedge] 30/5/2017 10:58

Perhaps they are holding £23.7m cash for an acquisition.

[walbrock82] 30/5/2017 10:42

Final Results

Comparing 2016 and 2017 by analysing it separately. I spot the one misleading discrepancy, that is the head count. In 2016, the head count was 777 and today’s headcount comes to 975.

So, how is it an increase of 135 staff? Should it be 198 staff? Kainos was a little sneaky by including contractor employees numbers this year but wasn’t last year.

Results

Shares are currently down 7% as I am giving you my thoughts.

Revenue came in at £83.5m which is lower than my forecast of £102m (based on the change in headcount).

Meanwhile, operating profits came in softer at £13.2m, which is way below my estimate of £20m. Also, this means operating margins have declined.

The operating cash flow was helped by an increase in £3m payables and zero increase in receivables.

The positive note is the increase in the cash balance to £23.7m, that was due to lower dividends. Total dividends payout came to £7.2m, which is 2.2% yield.
P.S. I know they increased their dividends by 5% this year. However, Kainos was paying out £13m in dividends to shareholders in 2016.

Overall, the results tell me the company is fairly valued.

[montyhedge] 30/5/2017 10:41

Newspapers like it.https://www.google.co.uk/amp/s/www.irishtimes.com/business/technology/kainos-reports-9-jump-in-revenue-on-back-of-strong-demand-1.3101286%3Fmode%3Damp

[montyhedge] 30/5/2017 10:36

AlroyrobGreat points you make.

[montyhedge] 30/5/2017 10:25

Totally agree. 2017/18 revenue £110m,Profit £22m. With a growing dividend.It's a tuck away for a double in shareprice not a trading punt.

[alroyrob] 30/5/2017 10:12

Take away the exceptional gain from last years figures and the statutory profit would have actually increased by 8% !
R & D has doubled but.. it is vital for sustaining the growth and will be worth the outlay in the long run.
As we already knew, Evolve EMR requires some NHS funding. This situation may improve(with current media pressure) however the other divisions, especially Workday and Evolve IC are growing rapidly.
Revenue + 9%
Dividend + 5%
Sales orders + 9%
Cash generation is excellent.
No debt.
Added some more during this dip as I reckon without the exceptional figure of 2016 to contend with and the expansion in the US and Europe.. the next set of results will look really good.

[irishlass2] 30/5/2017 09:47

Crash and burn? You can't be serious. This was caused by a few stoplosses being taken out. We now have a roadshow starting which will bring more buyers in. I would also expect most of the dividends to be reinvested in Knos shares. If I wasn't up to my eyes in Knos shares, I would be buying more. Price just gone from -21p to -10p.

[davr0s] 30/5/2017 09:31

Crash and burn is the market verdict then. Doesn't matter what any of us think - broken uptrend on high volume so time to leave it alone again for a while