2 Tech Stocks on a Roll Despite Pandemic Uncertainty

Source: Sergey Nivens, Shutterstock

 

Summary

  • Accsys, with its ESG strategy and constant revenue growth, is all set to ride the decarbonisation demand trend.
  • Despite the uncertainties around Covid-19, Kainos is looking ahead to a strong balance sheet in future

A positive revenue story from digital transformation companies and innovative green technology companies are showing positive demand signs on the technology derived transformational front. Even during the unprecedented time, these companies saw robust demand for artificial intelligence and ESG-based products/services. A few tech companies issued trading updates for FY21 on 16 April. Let us glance through the performance of companies during the pandemic.

Accsys Technologies

 

Green tech company Accsys Technologies Plc (LON: AXS) posted a trading update for 12 months ended 31 March 2021 based on unaudited statements. The net debt saw a reduction of €3.8 million compared to the September 2020 level, indicating strong operating cash-flows, efficient cost management and a healthy balance sheet even though it increased investment in its new manufacturing facilities. The company intends to publish its preliminary results for the full financial year in June for FY2021.

The management is currently focusing on rebuilding inventory stock levels, which are lower than usual due to Covid-19 induced supply chain disruptions. With the world moving towards decarbonisation, the innovative wood treatment of the company is helping it deliver sustainable products.

The company is looking forward to make it is one-of-a-kind Hull Tricoya® plant operational in the second half of FY22. The company expanded its Arnhem plant and made good progress with its joint venture in North America, which is expected to be a significant growth market for it. Its unique ESG approach is helping the company align with global demand for green products, and its goal is to achieve a 5X growth in production capacity by 2025.

AXS shares were trading at GBX 147.00, up by 2.80 per cent at 13:07 PM GMT+1. In the last one year, the FTSE AIM All-Share stock has given 109 per cent of return.

Kainos Group Plc 

Kainos Group Plc (LSE: KNOS), the UK-based tech specialist in Digital Services and Workday Practice, maintained the momentum charted in its trading statement released in January and expects that the results for FY21 will be above expectation.

The leading IT provider saw a robust demand from its existing and new customers throughout the unexpected last year for its digital transformation offerings. The company management attributes this to its 2,000 employees across 12 offices in Europe and North America. Its Artificial Intelligence and Cloud services have helped it get development projects, which can support the public sector, healthcare, and commercial clients.  

As a full-service partner of Workday, it also has got a rich experience in complex deployment and integrations, and test automation. With unmatched customer confidence and strong hiring, the company is aiming to finish future projects at a faster pace, resulting in a strong balance sheet. Kainos, thus, is expected to maintain its track record of revenue growth and excellent valuation metrics as there is still growth scope left for the tech-player.

KNOS shares were trading at GBX 1,631.00, down by 3.89 per cent at 13:10 PM GMT+1. In the last one year, the FTSE 250 stock has given 143 per cent of return.


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