Trading Update

RNS Number : 2257B

Kin and Carta PLC

10 February 2022

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

For immediate release

10 February 2022

Kin and Carta plc

Trading Update

CONTINUED STRONG DEMAND AND IMPROVED OPERATING MARGIN

Kin and Carta plc ("Kin + Carta" or the "Company"), the global digital transformation ("DX") consultancy, today provides a trading update covering the six month period ended 31 January 2022 ("H1"), ahead of the announcement of its half year financial results in March 2022. The trading performance reported in this statement is unaudited. Continuing operations exclude the results of the Incite, Edit and Relish ventures, all of which were divested in H1.

Highlights:

● Continued strong demand in H1 with net revenue from continuing operations of c.£85m

● Adjusted operating margin from continuing operations improved to c.7% in H1 FY22 from c.3% in H1 FY21

● FY22 Outlook: Higher organic net revenue growth from continuing operations of 35%-40% now expected, up from 30%, whilst holding adjusted operating margin expectations of 10%-11% for the full year

The Company had a positive start to the financial year and in line with growth trends reported for the year ended 31 July 2021, Kin + Carta is continuing to capture strong demand for its services. Trading for the first half of FY22 generated net revenue of c.£85 million from continuing operations with an improved operating margin over the comparable prior year period. The Company expects similar seasonality to prior years with higher net revenue and adjusted operating margins in H2 compared to H1.

Continuing Operations	H1 FY21	H2 FY21	H1 FY22
Net Revenue	£52.5m	£76.4m	c.£85m
Adjusted Operating Margin %	c.3%*	c.14%*	c.7%

*H1 FY21 and H2 FY21 included non-recurring credits to adjusted other income of £0.8m and £3.6m respectively in respect of forgiveness of loans received in FY20 under the US Paycheck Protection Program.

For the current financial year ending 31 July 2022, the Company now expects higher organic net revenue growth from continuing operations of 35%-40%, up from c.30%. FY22 adjusted operating margin from continuing operations is expected to remain in line with prior guidance of 10%-11%.

Kin + Carta's Chief Executive Officer J Schwan commented:

"Our trading performance continues to improve with strong first half revenue growth and operating margin expansion. As in previous years, our second half is expected to show a stronger performance with higher net revenue levels and improving operating margins".

Enquiries:  

Kin + Carta J Schwan CEO Chris Kutsor CFO	[phone]
Powerscourt Robin O'Kelly / Jane Glover	[phone]
Numis Securities Limited Nick Westlake / Matt Lewis Peel Hunt LLP Edward Knight/John Welch	[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 1,700 strategists, engineers, and creatives 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 border-less 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 publicly-traded business on the London Stock Exchange to achieve B Corp certification as a PLC. It meets the highest 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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