Trading Update
17/08/2023 07:00
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RNS Number : 5679J Kin and Carta PLC 17 August 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
For immediate release
17 August 2023
Kin and Carta plc
Trading Update
Kin and Carta plc ("Kin + Carta" or the "Company"), the global digital
transformation ("DX") consultancy, provides a trading update covering the year
ending 31 July 2023 ("FY23").
Net revenue for Q4 of c. £48 million is in line with expectations, and at the
middle of the Company's projected range for the period. Q4 reflects a second
quarter of sequential net revenue growth before and after acquisition effects.
Net revenue growth for FY23 is expected to be flat over FY22 at c. £192
million, in line with expectations.
FY23 adjusted operating profit is expected to be £17.9 - £18.4 million,
10.5% - 14.0% ahead of market expectations, reflecting a realigned operating
model with a lower cost base and improved operational efficiencies. The
resulting adjusted operating profit margin is expected to be 9.3% - 9.6% and
adjusted EBITDA margins are expected to be 11.7% - 12.0%. Net debt remains
modest relative to adjusted EBITDA and is expected to be c. £20 million at 31
July 2023.
The Company enters FY24 with a healthy backlog and expects further sequential
net revenue growth in Q1. Although client engagement levels are strong, it is
clear that market headwinds remain across the sector and we continue to manage
the business with the necessary caution.
The Company will announce its preliminary results for FY23 and outlook for
FY24 in October.
Kin + Carta's Chief Executive Officer, Kelly Manthey, commented: "We executed
through a challenging second half to return to modest quarterly growth with an
improved cost base. While macro challenges remain across the sector, I am
encouraged by the start to Q1 underpinned by a solid foundation of enterprise
clients."
Figures are unaudited
Enquiries:
Kin + Carta +44 (0) 207 928 8844
Kelly Manthey CEO
Chris Kutsor CFO & COO
Powerscourt +44 (0) 771 324 6126
Elly Williamson / Jane Glover
Numis Securities Limited +44 (0) 207 260 1345
Nick Westlake / Tejas Padalkar
Peel Hunt LLP +44 (0) 207 418 8900
John Welch / Paul Gillam
About Kin + Carta
Kin + Carta is a London Stock Exchange listed global digital transformation
consultancy committed to working alongside clients to build a world that works
better for everyone.
Kin + Carta's 2,000 consultants, engineers and data scientists around the
world bring the connective power of technology, data and experience to the
world's most influential companies - helping them to accelerate their digital
roadmap, rapidly innovate, modernise their systems, enable their teams and
optimise for continued growth. Headquartered in London and Chicago with
offices across three continents, the borderless model of service allows for
the best minds to be connected to collaborate on client challenges.
With purpose at its core, Kin + Carta became the first company listed on the
London Stock Exchange to achieve B Corp certification. It meets high standards
of verified social and environmental performance, public transparency and
accountability to balance the triple bottom line of people, planet and profit.
For more information, please visit https://www.kinandcarta.com.
Important notices
This announcement contains inside information and is issued on behalf of the
Company by Daniel Fattal, Company Secretary.
Cautionary statement regarding forward-looking statements
This Announcement may contain "forward-looking statements" with respect to
certain of the Company's plans and its current goals and expectations relating
to its future financial condition, performance, strategic initiatives,
objectives and results. Forward-looking statements sometimes use words such as
"aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", "seek", "may", "could", "outlook" or other words of similar
meaning. By their nature, all forward-looking statements involve risk and
uncertainty because they are based on numerous assumptions regarding the
Company's present and future business strategies, relate to future events and
depend on circumstances which are or may be beyond the control of the Company
which could cause actual results or trends to differ materially from those
made in or suggested by the forward-looking statements in this Announcement,
including, but not limited to, domestic and global economic business
conditions; market-related risks such as fluctuations in interest rates; the
policies and actions of governmental and regulatory authorities; the effect of
competition, inflation and deflation; the effect of legislative, fiscal, tax
and regulatory developments in the jurisdictions in which the Company and its
respective affiliates operate; the effect of volatility in the equity, capital
and credit markets on profitability and ability to access capital and credit;
a decline in credit ratings of the Company; the effect of operational and
integration risks; an unexpected decline in sales for the Company; inability
to realise anticipated synergies; any limitations of internal financial
reporting controls; and the loss of key personnel. Any forward-looking
statements made in this Announcement by or on behalf of the Company speak only
as of the date they are made. Save as required by the Market Abuse Regulation,
the Disclosure Guidance and Transparency Rules, the Listing Rules or by law,
the Company undertakes no obligation to update these forward-looking
statements and will not publicly release any revisions it may make to these
forward-looking statements that may occur due to any change in its
expectations or to reflect events or circumstances after the date of this
Announcement.
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