Divestment for £18 million cash
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
29 September 2021
Kin and Carta plc
Divestment for £18 million cash
Kin and Carta plc (the "Company" or "Kin + Carta"), the international digital transformation ("DX") consultancy, has divested Incite Marketing Planning Limited and Incite New York LLC (together, "Incite") to Strat7, a leading provider of strategic marketing and planning services. Incite provides research, planning and strategic consultancy services for clients ranging from insight professionals and marketing leaders through to the executive and investor community.
The consideration receivable is £18 million cash, net of customary adjustments for cash, debt and working capital, of which £17 million was paid upon completion, and a deferred amount of £1.0 million is payable on 31 July 2022.
As a consequence of the divestment, the results of Incite will be reported as discontinued operations within Kin + Carta's results for the year ended 31 July 2021 ("FY21"). Incite contributed net revenue of £11.7 million and adjusted operating profit of £2.2 million in FY21, and had gross assets of £8.0 million at 31 July 2021.
In the short term, the net proceeds of the disposal will be used to pay down debt, further strengthening the balance sheet. As part of its growth strategy, Kin + Carta continues to pursue a robust funnel of DX acquisition candidates that can be funded by this strengthened balance sheet.
J Schwan, Kin + Carta CEO said "Incite is a quality business and I wish its management and staff well. The disposal is executing on our ongoing strategy to focus on our core digital transformation services. We anticipate further disposals from our Ventures division in due course that will help facilitate the pipeline of acquisition opportunities we are currently assessing."
Enquiries:
|
Kin + Carta J Schwan CEO Chris Kutsor CFO |
+44 (0) 207 928 8844 |
|
Powerscourt Elly Williamson / Jane Glover |
+44 (0)7970 246 725 |
|
Numis Securities Limited Nick Westlake / Matt Lewis
Peel Hunt LLP Edward Knight/John Welch |
+44 (0)207 260 1345
+44 (0) 20 7418 8900 |
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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