StockMarketWire.com - Digital transformation Kin + Carta swung to a profit as its efforts to capture growth in the digital transformation market began to take shape.

For the period from 4 August 2018 to 31 July 2019, the company reported a pre-tax profit of £1.8m, compared with a loss of £31.2m a year earlier and like-for-like net revenue rose 2% to £148.0m a year earlier.

The results included £3m of investment in launching our new strategy which was second half weighted, and the company said it saw early signs of success with significant new client wins across key sectors such as Barclays, Blue Cross Blue Shield and Shell.

The company recommended an unchanged final dividend of 1.30p a share, giving an unchanged total dividend of 1.95p.

‘For FY2020 we expect double-digit net revenue growth of 10 to 12%, accelerating primarily in the second half, with double-digit adjusted operating margins of 12 to 13% for the year,’ the company said.

‘Whilst investment will have some impact on the H1 2020 profitability, it will deliver higher growth and improved profitability in H2 2020,’ it added. ‘Over the medium term we expect both net revenue growth and operating margins to improve into the low teens, whilst we manage operating margin to fund continuing investment in the growth of the business.’




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