Divestments of Edit and Relish
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
For immediate release
15 November 2021
Kin and Carta plc
Divestments of Edit and Relish for £18.6 million cash - ventures divestments now complete
Kin and Carta plc (the "Company" or "Kin + Carta"), the international digital transformation ("DX") consultancy, has now successfully completed the divestments of its two remaining venture businesses, Edit Agency Limited ("Edit") and Relish Agency Limited ("Relish"), for a total of £18.6 million in cash before costs and customary adjustments for debt and working capital. The net proceeds of the disposals move the Company into a net cash position, further strengthening the balance sheet and capacity for selective acquisitions.
Edit combines martech, customer data and media to drive growth for clients and has been bought by The Salocin Group, a UK-based marketing services group. The consideration of £13.35 million before costs and customary adjustments for cash, debt and working capital was received in full on completion.
Relish is a product sampling agency specialising in the beauty and fast-moving consumer goods sectors and has been bought by leading logistics specialist, Whistl. The consideration of £5.25 million before costs and customary adjustments for cash, debt and working capital was received in full on completion.
The financial results of Edit and Relish for the period up to divestment will be reported as discontinued operations within Kin + Carta's FY22 financial statements. Edit contributed net revenue of £10 million and adjusted operating profit of £1.9 million in FY21. Relish contributed net revenue of £2.5 million and adjusted operating profit of £1.0 million in FY21.
J Schwan, Kin + Carta CEO said "These divestments mark the culmination of our journey to a pure-play DX focused business. The cash received further strengthens our balance sheet and adds fuel for additional acquisitions. We expect further M&A in the fiscal year as part of our growth strategy and remain optimistic in our aspiration to double organic net revenue from FY21 over the next four years."
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 |
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 c1,600 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 is a Certified B Corporation in the United States and Europe, meeting 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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