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Kin & Carta PLC shares were up on Thursday, after it said it expects profit to beat market forecasts for financial 2023. Shares in the London-based business consultancy were up 13% to 72.00 pence each in London on Thursday morning. Kin & Carta said revenue in its fourth quarter, ended July 31, will be about £48 million, in line with expectations. It noted that the fourth quarter reflects a second quarter of sequential net revenue growth before and after acquisition effects. Net revenue growth for financial 2023 is expected to be flat annually at about £192 million, in line with expectations. Full year adjusted operating profit is expected to be between £17.9 million to £18.4 million, 10.5% to 14.0% ahead of market expectations. It said that this reflects ‘a realigned operating model with a lower cost base and improved operational efficiencies’. The resulting adjusted operating profit margin is expected to be 9.3% to 9.6% and adjusted earnings before interest, tax, depreciation and amortisation margins are expected to be 11.7% to 12.0%. Kin & Carta said it has entered financial 2024 with a healthy backlog and expects further sequential net revenue growth in the first quarter. ‘Although client engagement levels are strong, it is clear that market headwinds remain across the sector and we continue to manage the business with the necessary caution,’ it warned. The company will announce its preliminary results for financial 2023 and outlook in October. Chief Executive Officer Kelly Manthey commented: ‘We executed through a challenging second half to return to modest quarterly growth with an improved cost base. While macro challenges remain across the sector, I am encouraged by the start to [the first quarter] underpinned by a solid foundation of enterprise clients.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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