Final US Government loan forgiveness confirmed
11 June 2021
Kin and Carta plc
('Kin + Carta', the 'Group', or the 'Company')
Final US Government loan forgiveness confirmed
Kin + Carta, the international digital transformation Company, provides the following update regarding the loan forgiveness anticipated from the US Government Paycheck Protection Programme ("PPP").
As reported in the Company's half year results covering the period 1 August 2020 to 31 January 2021 (the "First Half"), announced on 10 March 2021, the Company accessed £6.7 million of PPP loans last summer to mitigate the impacts of Covid-19 that would otherwise have resulted in significant reductions in the Company's US workforce. During the First Half, the Company invested in a series of innovative projects with its clients, absorbing employment and project delivery costs associated with retaining its people and allowing it to retain talent within the business and enhance client goodwill. These costs are compensated for by the offsetting credit from PPP loan forgiveness totalling £4.5 million of which £0.8 million was recognised in the First Half. In line with expectations reported within the half year results, the US Government has provided confirmation that a further £3.7 million of the loan has been forgiven. The £3.7 million associated credit will now be recognised as other income within the income statement in the Second Half of the Company's financial year ending 31 July 2021. The remaining loan balance of £1.8 million after forgiveness and net of the effects of foreign currency revaluation will be repaid in May 2022.
As previously announced, Kin + Carta will host a virtual Capital Markets Event for investors and equity analysts on Tuesday, 15 June 2021. Further detail will be made available then, as will greater insight into the business and its growth prospects, along with an update on the Group's strategy and long-term outlook.
Please contact Powerscourt via kinandcarta@powerscourt-group.com to register your interest if you have not already done so.
Enquiries:
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Kin + Carta J Schwan CEO Chris Kutsor CFO
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+44 (0) 207 928 8844 |
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Powerscourt Elly Williamson / Jane Glover
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+44 (0)7970 246 725 |
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Numis Securities Limited Nick Westlake / Matt Lewis
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+44 (0)207 260 1345
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Peel Hunt LLP Edward Knight/John Welch |
+44 (0) 20 7418 8900 |
About Kin + Carta
Kin + Carta is a responsible and growing global digital technology services company delivering outcome-based transformation across four key elements of the digital transformation value chain; data, technology, experience, and organisational change.
To serve and scale within the rapidly growing digital transformation market, Kin + Carta is structured as a platform-based organisation that enables the borderless connection of three valuable schools of specialist talent:
● Kin + Carta Advise - Digitally native management consultancy. Our sector-focused consultants help the C-Suite better understand the shifts in their market and how their products and services need to evolve.
● Kin + Carta Create - Modern cloud, data and software engineering studio. Our 800+ data scientists, software engineers and designers utilise emerging technologies to create new products and platforms for our CIO clients.
● Kin + Carta Connect - Data-driven marketing technology agency. Our MarTech, content, and brand experts help our CMO clients amplify their digital investments and experiences by implementing and optimising modern marketing technology and data platforms.
Headquartered in London and Chicago, Kin + Carta nurtures c1,600 engineers, strategists and designers within a maker-culture that serves the healthcare, financial services, B2B, consumer, agriculture and transportation sectors.
Kin + Carta is on the road to achieving B Corp certification for all its operating subsidiaries, meeting the highest standards of verified social and environmental performance, public transparency, and accountability to balance profit and purpose.
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