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By Simon Zekaria

LONDON--Shares in U.K information technology, consulting and software services provider Kainos Group PLC (KNOS.LN) slipped Monday after the costs of its initial public offering led to a fall in interim earnings.

In the first results since listing in July, the company said pretax profit for the six months to Sept. 30 fell to 5.2 million pounds ($7.88 million) from GBP5.7 million the previous year.

At 1100 GMT, shares were down 8.7% to 255 pence, valuing the company at GBP330 million.

However, excluding exceptional items, pretax profit rose 20% on the year to GBP6.80 million, boosted by contract wins, the launching of local sales operations in the U.S. and the Netherlands, and a healthcare partnership with U.S. technology company Apple Inc. (AAPL).

Revenue grew 29% to GBP37.2 million and sales bookings increased 55% to GBP34.8 million.

It recommended an interim dividend of 1.8 pence a share.

"We have seen solid performance across the group during this reporting period, with increasing levels of demand across each of our operating divisions," said Chief Executive Brendan Mooney. "We are confident that trading is in line with market expectations and we are well positioned to deliver future growth."

Shore Capital analyst Peter McNally noted a fall in gross margin for the company's digital services division, which was weaker than expected.

Write to Simon Zekaria at simon.zekaria@wsj.com

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(END) Dow Jones Newswires

November 23, 2015 07:14 ET (12:14 GMT)

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