- Digital transformation company Kin + Carta on Thursday reported narrower first-half losses, but revenue undershot guidance amid weakness in its strategy and communications pillars.

For the six months to 31 January, the statutory loss before tax narrowed to £1.6m from £19.3m a year earlier. Revenue fell 5% to £87.2m, and came in slightly lower than the targeted mid-single digit run rate.

Its strategy and communications pillars segment saw revenue decreased during the period by 8% and 14%, on a like-for-like basis, respectively, as the company migrated these pillars away from lower margin work in the short term, to target larger clients and higher margin DX revenue in the longer term.

Operating margins was maintained at 11% from a year earlier, above guidance of 10%.

'During the first six months we have both added new clients and expanded existing client relationships, whilst at the same time rolling out our central sales and marketing functions to accelerate growth,' said J Schwan, CEO.

'We are continuing to reposition our Strategy and Communications pillars to better align them with our digital transformation focus. We are also deepening our software partnerships with Pivotal and Google Cloud which, coupled with the other initiatives we are undertaking across the Company, will position us to accelerate our pace of growth in the future.'

'Whilst we still have much to do to generate higher returns from our businesses, we believe we are on track to meet the Board's expectations for Adjusted profit before tax for the current year.'

At 9:37am: [LON:KCT] Kin and Carta share price was -7.75p at 86.25p

Story provided by