Kainos Group
Website:
Kainos Group
Index:
FTSE 250
EPIC: KNOS
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Software
Market Cap:
£1.54B
Payout Frequency: Semi-Annual
Kainos Group Dividend Analysis and Summary
Dividend declaration and timetable
- Final dividend declared: 19.8p per share (subject to AGM approval)
- Total FY26 dividend: 29.6p per share (FY25: 28.4p; +4% YoY)
- Ex-dividend date: 01/10/2026
- Record date: 02/10/2026
- Payment date: 23/10/2026
- Interim dividend already paid: 9.8p per share
- Policy: progressive; FY26 distributions equal to 70% of adjusted profit after tax
- Indicative yield: not provided (depends on current share price)
Dividend cover and affordability
- Adjusted diluted EPS: 41.1p; cover on total DPS 29.6p ˜ 1.4x
- Statutory diluted EPS: 35.1p; cover on total DPS ˜ 1.2x
- Payout ratio (management basis): 70% of adjusted PAT (implies cover ~1.43x)
- Balance sheet: £89.1m cash, no debt; cash conversion 99%
Sustainability and growth assessment
- Growth trajectory: Total DPS up +4%, broadly aligned with adjusted EPS growth (+7%) and ahead of adjusted PBT (+2%), indicating continued commitment to a progressive policy.
- Earnings support: Revenue up +17%; backlog up +18%; Products ARR up +23% to £89.0m with a target of £100m by end-2026, underpinning medium-term cash flows.
- Margin outlook: FY26 margins compressed by elevated contractor/third-party costs and Workday partnership fees; management expects margin improvement in FY27 as contractors are replaced by FTEs—supportive for future cover.
- Capital allocation: Dividend complemented by buybacks (see below), which reduce share count and future cash outflow, modestly improving dividend affordability.
- Overall view: With ~1.4x adjusted cover, robust cash generation, and no leverage, the dividend appears sustainable. Scope for mid-single-digit DPS growth remains, contingent on execution and margin recovery.
Capital allocation and structural considerations
- Share buybacks: £90m returned over the last 18 months; most recent programme completed 15/05/2026 (3.73m shares, £30m). No current plan for a new programme but under review.
- M&A/Investment: Acquisition of Davis Pier (Canada); continued R&D investment (£18.7m) and sales/marketing for Products (£18.7m); construction of new Belfast HQ (£5.9m FY26 spend).
- Policy: Explicit progressive dividend targeting ~70% of adjusted PAT, balanced with growth investment and opportunistic buybacks.
- No share consolidation or demerger announced.
Risks and flags relevant to dividend stability
- Margin pressure: Elevated contractor and third-party costs reduced margins in FY26; improvement depends on successful hiring and utilisation.
- Cash balance down to £89.1m (from £133.7m) after buybacks, capex and M&A—still strong, but less headroom if trading slows.
- Sector exposure: Significant reliance on UK public sector and NHS programmes; budget cycles or policy shifts could affect timing of cash flows.
- Workday ecosystem dependence: Strategy and pricing dynamics (including potential shift to usage-based pricing) could impact Product ARR growth or margins.
- FX and international expansion risks as North America and newer geographies grow; integration of Davis Pier must remain on track.
- NPS decline (61 vs 70) still “excellent” but warrants monitoring for any leading indicators of delivery strain.
Read more
Kainos Group Annual Dividend Yield - 2.2%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 02/10/2025 |
24/10/2025 |
Final |
19.10p |
GBX |
| 20/11/2025 |
12/12/2025 |
Interim |
9.8000p |
GBX |
Total (Annual Dividends Per Share):
28.90p
Dividend Yield =
Annual Dividends Per Share (28.90p)
÷ Share Price (1314p)
= 2.2%
Kainos Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 01/10/2026 |
23/10/2026 |
Final |
19.8000p |
GBX |
| 20/11/2025 |
12/12/2025 |
Interim |
9.8000p |
GBX |
| 02/10/2025 |
24/10/2025 |
Final |
19.10p |
GBX |
| 21/11/2024 |
13/12/2024 |
Interim |
9.30p |
GBX |
| 03/10/2024 |
25/10/2024 |
Final |
19.10p |
GBX |
| 23/11/2023 |
15/12/2023 |
Interim |
8.20p |
GBX |
| 28/09/2023 |
20/10/2023 |
Final |
16.10p |
GBX |
| 24/11/2022 |
16/12/2022 |
Interim |
7.80p |
GBX |
| 06/10/2022 |
28/10/2022 |
Final |
15.10p |
GBX |
| 25/11/2021 |
24/12/2021 |
Interim |
7.10p |
GBX |
| 30/09/2021 |
29/10/2021 |
Final |
15.10p |
GBX |
| 26/11/2020 |
18/12/2020 |
Interim |
6.40p |
GBX |
| 06/08/2020 |
04/09/2020 |
Special |
6.70p |
GBX |
| 28/11/2019 |
20/12/2019 |
Interim |
3.50p |
GBX |
| 26/09/2019 |
25/10/2019 |
Final |
6.50p |
GBX |
| 06/12/2018 |
28/12/2018 |
Interim |
2.80p |
GBX |
| 20/09/2018 |
19/10/2018 |
Final |
4.60p |
GBX |
| 07/12/2017 |
29/12/2017 |
Interim |
2.00p |
GBX |
| 21/09/2017 |
20/10/2017 |
Final |
4.40p |
GBX |
| 08/12/2016 |
30/12/2016 |
Interim |
1.90p |
GBX |
| 29/09/2016 |
21/10/2016 |
Final |
4.20p |
GBX |
| 03/12/2015 |
08/01/2016 |
Interim |
1.80p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
9.300 |
19.100 |
|
GBX |
28.400 |
16.870 |
| 2023 |
8.200 |
16.100 |
|
GBX |
24.300 |
6.110 |
| 2022 |
7.800 |
15.100 |
|
GBX |
22.900 |
3.150 |
| 2021 |
7.100 |
15.100 |
|
GBX |
22.200 |
69.460 |
| 2020 |
6.400 |
|
6.700 |
GBX |
13.100 |
31.000 |
| 2019 |
3.500 |
6.500 |
|
GBX |
10.000 |
35.130 |
| 2018 |
2.800 |
4.600 |
|
GBX |
7.400 |
15.620 |
| 2017 |
2.000 |
4.400 |
|
GBX |
6.400 |
4.910 |
| 2016 |
1.900 |
4.200 |
|
GBX |
6.100 |
238.880 |
| 2015 |
1.800 |
|
|
GBX |
1.800 |
|
Kainos Group Dividend Calculator
Kainos Group Dividend Growth
| Dividend Growth (1Y) |
-31.49%
|
| Dividend CAGR (5Y) |
5.57%
|
| Years of Growth |
10
|
| Payout Ratio |
81.49%
|
| Buyback Yield |
4.01%
|
| Shareholder Yield |
6.26%
|
| P/E Ratio (TTM) | 36.67 |
|---|
| Forward P/E | 25.05 |
|---|
| P/FCF | 30.78 |
|---|
| Earnings Yield | 2.73% |
|---|
| FCF Yield | 3.25% |
|---|
| ROE | 35.65% |
|---|
| ROCE | 49.9% |
|---|
| Profit Margin | 9.86% |
|---|
| Operating Margin | 12.74% |
|---|
| Gross Margin | 46.14% |
|---|