Kainos Group - helping the NHS to save time

[ADrunkenMarcus]

I only found this Kainos thread in May last year so paid £6.10 a share but I’m very pleased with the increase in the share price since then. It’s so impressive that, in their last trading update, and with such economic uncertainty etc, Kainos already knew by the end of July 2020 that their revenue for the year ending 31 March 2021 would be “well ahead” and their adjusted profit “substantially ahead” of then current consensus forecasts. Something must be going very right...

RD,

It's an impressive performer alright - admittedly it looks expensive but so it did when I first purchased. At its recent peak of 1198p, it was up 400% for me including dividends. Not many shares quintuple in about three years! Long may it continue for us.

Best wishes

Mark.

[ADrunkenMarcus]

Yet again, Kainos have failed to meet trading expectations and have been forced to issue a second warning to that effect this year, with the release of today's unscheduled trading statement.

Fortunately, their failure is due to them doing substantially better than expected (again).

Brokers reacted positively to the latest update with both Investec and Canaccord reiterating their Buy recommendations. Canaccord also raised its target price to 1,550p from 1,020p.
“We believe there is plenty of growth runway ahead,” said analysts.
Investec analysts meanwhile described Kainos as “a core sector pick due to its structural growth exposure and high-quality model”.

The shares were up 31 percent at one stage today, closing up over 22 percent.

As for me, the share price is up 455 percent since my May 2017 purchase. I thought the company's shares looked expensive then!

Best wishes

Mark.

[ADrunkenMarcus]

Kainos' interim results for the first half of the current financial year were quite pleasing, with revenue up 23 percent, profit before tax up 100 percent, net cash up 51 percent, the order backlog up 38 percent and the interim dividend up 83 percent.

Best wishes

Mark

[ADrunkenMarcus]

I'm pleased to report a seven-bagger.

Kainos' share price touched 1677p today, up 585.4 percent on my purchase price in May 2017. Dividends on top (assumed taken as cash and not reinvested) bring it to a total return of 600.5 percent.

The share price has compounded at 62 percent over four years and the dividend per share at 27 percent, but the 2021 dividend is not yet known. It is projected at 20p by 'consensus' estimates which would be an 8.2 percent yield on cost.

It is getting to a real 'sweet spot' in terms of compounding, because it only takes an increase of 14-15 percent or so on today's share price to add another 100 percent gain to my original capital.

And this is one of those 'hindsight' biases where I wonder why I didn't put 50 percent of my portfolio into it!

Best wishes

Mark.