Kin + Carta Optimistic Despite Revenue Decline

UK-based Kin + Carta has announced preliminary results for the year ended 31st July, with adjusted net revenue of £137.8m, down 7% on a like-for-like basis; while adjusted profit before tax from continuing operations was £10.5m, flat after adjustments and allowance for IFRS 16 accounting changes.

Headquartered in London, digital transformation advisor Kin + Carta operates across the USA, the UK, Continental Europe and South America, employing a team of c.1,400 engineers, strategists and designers. It includes a recently formed 'Advise' unit which provides clients with data intelligence, strategy, and the engineering expertise necessary to build products, services and platforms; as well as MR firm Incite.

The firm says its second half adjusted profit before tax of £5.6m reflects 'business agility and resilience amidst the pandemic'. On a reported basis the firm made a statutory loss before tax from Continuing Operations of £33.8m, resulting from the impairment of goodwill in a non-strategic Ventures business, acquisition related costs and restructuring.

During the year the group, which used to be known as St Ives, completed the final stages of its transformation to an integrated consultancy with the launch of new brands Kin + Carta Advise, Kin + Carta Create and Kin + Carta Connect. It also acquired Spire Digital in November 2019 and says it has been successfully integrated. Kin + Carta says it expects net revenue in Q1 of FY21 to be higher than Q4 of FY20; that pipeline activity has improved and continues to accelerate; and that it is 'optimistic of a return to revenue and profit growth in the second half of the financial year, whilst mindful of the uncertainty caused by the pandemic'.

Chief Exec J Schwan comments: 'The pandemic has emphasised that it is no longer optional for businesses to become digital, it is imperative. With our own transformation to a pure play DX consultancy now complete, we are seeing this market imperative help fuel our recent recovery which is reflected in our current pipeline value achieving its highest levels in over a year.

'We have made significant investment in creating the powerful combination of our three-pillar platform, a regional go-to-market structure and centralised operating capabilities which combined, will allow us to build scale more effectively. I remain confident in the future opportunity for Kin + Carta and believe the company is in better shape than ever to deliver on it'.

Web site: www.kinandcarta.com .