Kainos Group

Website: Kainos Group
Index: FTSE 250
EPIC: KNOS
Supersector: Technology
Sector: Software and Computer Services
Subsector: Software
Market Cap: £953.98M
Payout Frequency: Semi-Annual

Next Kainos Group Dividend

Kainos Group next goes ex-dividend on 01/10/2026. This will be the Final dividend for 2026.

The dividend per share amount is 19.8000p (GBP) and the payment date is 23/10/2026.

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.

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 (820.5p) = 3.52%

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

Number of Shares:

Payment	Paid	Amount
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