Kin and Carta loss widens as acquisition costs weigh
Digital transformation firm Kin and Carta today reported a wider loss as acquisition and restructuring costs weighed on growth.
The London-based firm posted a pre-tax loss of £5.9m in the six months to the end of January, compared to a £1.6m loss the year before. Like-for-like revenue also slipped 0.5 per cent to £89.6m over the period.
Kin and Carta, formerly known as St Ives Group, said the figures were impacted by the £27m takeover of consultancy and software firm Spire Digital in November.
The firm said its strategy unit, which has been restructured to form Kin and Carta Advisory, had returned to modest growth, while its innovation division posted double-digit growth.
However, Kin and Carta said it was “assessing strategic option” for its communications unit, which lagged behind expectations in the half-year period.
The company blamed the sluggish trading on uncertainty related to Brexit and the General Election, stating that several UK clients had delayed projects in the first half.
However, it said it was optimistic about improved performance in the second half of the year as the delayed projects came to fruition.
Shares in Kin and Carta closed up 2.6 per cent following the trading update.
“Kin and Carta’s transformation into an integrated global consultancy continues,” said chief executive J Schwan. “The recent launch of our three go-to-market brands Advise, Create and Connect is a significant milestone in our evolution and has been well received by the market.
He added: “Our recent US acquisition of Spire Digital is trading well and integrating efficiently, providing a proof point of our growth strategy that includes acquisitions.”
The firm said it had not yet felt any impact from the coronavirus update, but said it would monitor any risks that could alter its outlook for the full year.