Trading Update

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 Kelly Manthey CEO Chris Kutsor CFO & COO	[phone]
Powerscourt Elly Williamson / Jane Glover	[phone]
Numis Securities Limited Nick Westlake / Tejas Padalkar Peel Hunt LLP John Welch / Paul Gillam	[phone]     [phone]

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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