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IT services provider Kainos Group said it would not declare a final dividend in a bid to conserve cash despite reporting a 10% rise in annual profit as a strong uptick in sales boosted revenue.
The company said it had decided not to declare a final dividend for 2020 and to take the opportunity to review the dividend position later in the year, when the impact of the coronavirus pandemic became clearer.
For the year ended 31 March 2020, pre-tax profit rose 10% to £23.2m on-year and revenue climbed 18% to £178.8m.
Sales orders were up 42% to £243.6m and the contracted backlog grew 47% to £180.0m.
'Against the backdrop of an uncertain global economic climate, the directors believe that the group's very strong sales performance and consequent increase in contracted backlog provide a solid foundation which supports near-term performance,' the company said.