11th Mar 2020 10:49
(Alliance News) - Kin & Carta PLC on Wednesday said it is keeping a close eye on coronavirus after reported a fall in like-for-like revenue.
The business consultancy's revenue on a like-for-like basis for the six months to January 31 fell 0.5% to GBP89.6 million, though reported revenue growth was 3%.
London-based Kin & Carta's pretax loss widened to GBP5.9 million from the GBP1.6 million reported a year earlier. The wider loss was caused by acquisition and restructuring costs.
During the half, the company spent GBP27 million purchasing Spire Digital, a US-based digital consulting firm.
On an adjusted basis, Kin & Carta's adjusted pretax profit fell by 32% on the prior year to GBP5.4 million.
The Innovation business, which makes up over half of group net revenue, delivered a double-digit rise in net revenue driven by the US.
Kin & Carta has kept the interim dividend unchanged on the year before at 0.65 pence per share.
Chief Executive J Schwan commented: "Kin & Carta's transformation into an integrated global consultancy continues. 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. 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 board remains confident of an improved second half. Whilst we have not experienced any impact to date, our optimism is tempered by uncertainties caused by the effects of Covid-19. We currently expect to meet expectations for the year but are maintaining a careful watch on risks that could alter that outlook."
"I remain confident that the investment we are making in the Kin & Carta platform will continue to improve our opportunity in the fast growing digital transformation market," Schwan added.
Shares were 2.9% higher on Wednesday morning in London at a price of 79.20p each.
By George Collard; [email protected]
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