Disposal of Hive for £13.8 million
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
For immediate release
17 December 2020
Kin and Carta plc
Disposal of Hive for £13.8 million
Kin and Carta plc (the "Company" or "Kin and Carta"), the international digital transformation ("DX") company, announces the disposal of its healthcare communications business Hive, that was previously held for sale, to Fishawack Medical Communications Limited and Fishawack Midco US Holdings LLC, both part of Fishawack Health, a global commercialisation partner for the life science industry. Hive, which is comprised of The Health Hive Group Limited and its subsidiaries and The Health Hive (US) LLC, contributed net revenue of £6.5 million and profit before tax of £1.2 million for the financial year ended 31 July 2020 and had gross assets of £9.1 million at 31 July 2020. The disposal forms part of the final transformation of Kin and Carta into an integrated technology platform serving the DX market globally.
The consideration receivable was settled in full in cash, and the net proceeds from the disposal of £13.8 million will be used to repay debt, further enhancing the Company's balance sheet strength as well as facilitating ambitions to acquire businesses that complement its existing capabilities and grow its geographic reach.
J Schwan, CEO, said:
"We are pleased to have found a buyer for Hive, which is a strong business but not aligned to our focus on the DX market. We are also thankful for the service of our Hive employees over the years. The proceeds strengthen our financial position and will allow us to make additional DX acquisitions. The contribution that Spire Digital has made since we acquired it just over a year ago, as well as the accelerated transformation to digital catalysed by the pandemic, confirm our belief that our focus on the fast growing DX market will drive value for our shareholders."
Enquiries:
|
Kin and Carta J Schwan CEO Chris Kutsor CFO |
+44 (0) 207 928 8844 |
|
Powerscourt Elly Williamson / Jessica Hodgson |
+44 (0)203 328 8386 |
|
Numis Securities Limited Nick Westlake / Matt Lewis |
+44 (0)207 260 1345 |
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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