2nd Oct 2019 10:49
(Alliance News) - Kin & Carta PLC on Wednesday said it swung to a full-year profit on significantly reduced exceptional costs, as the company progressed with its strategic plan, but revenue fell.
Revenue in the financial year ended July 31 was down 3.1% to GBP172.9 million from GBP178.4 million, the marketing services firm said. Net revenue, after project-related costs, decreased by 0.2% to GBP148.0 million from GBP148.3 million.
The company posted a pretax profit of GBP1.8 million, compared with a GBP31.2 million loss last year. On an adjusted basis, before exceptional items, Kin & Carta recorded a 4.9% fall in pretax profit to GBP17.6 million from GBP18.5 million.
Kin & Carta booked GBP15.8 million in exceptional items, trimmed from GBP49.6 million a year ago, particularly helped by acquisition-related costs tumbling to GBP9.0 million from GBP47.8 million.
The firm held its full-year dividend at 1.95 pence.
Chief Executive J Schwan said: "This year Kin & Carta has made significant headway executing on the strategic plan we outlined at the end of fiscal year 2018. We have reoriented our proposition and brand towards where we see the greatest opportunity, the digital transformation market."
Looking ahead, Kin & Carta forecasts double-digit net revenue growth, between 10% and 12%, in the current financial year. Increased investment will hamper profits in the first half of the year but it expects to deliver improved profitability in the second half.
The company, formerly known as St Ives, in July said it made GBP3.0 million in investments as it committed funds to aid its geographic expansion and the building of central sales, marketing and partnerships functions.
Shares in Kin & Carta were 1.8% higher at 82.45 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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