Kin and Carta (KCT)

Sector:

IT Services

Index:

FTSE Small Cap

 128.40p
   
  • Change Today:
      0.000p
  • 52 Week High: 136.00
  • 52 Week Low: 58.00
  • Currency: UK Pounds
  • Shares Issued: 177.93m
  • Volume: 2,253,728
  • Market Cap: £228.46m
  • RiskGrade: 82

Kin and Carta secures increased covenant ceiling as revenue falls

By Josh White

Date: Thursday 23 Jul 2020

LONDON (ShareCast) - (Sharecast News) - Kin and Carta announced on Thursday that its banks have agreed to raise the ceiling on its quarterly leverage covenant to up to 5x EBITDA, from a previous 2.5x, for the four quarters from the current three month period ending 31 July.
The London-listed firm had announced in April that it was in discussions with its banking syndicate, with the lenders reportedly continuing to be supportive of the business.

It said on Thursday that the new position provided it with "significant" headroom to its base case forecasts, and underpinned its confidence in its ability to trade through a further downturn if required.

The company's balance sheet remained resilient, with net debt expected to improve at the end of the financial year, compared to the £39.5m reported as at 31 January.

It said its revolving credit facility remained unchanged at £85m, and was committed until November 2022.

As it also said on 1 April, Kin and Carta was working with the trustees of the legacy defined benefit pension scheme, agreeing to a deferral of deficit repair contributions for five months from April.

"We anticipate finalising a revised schedule of future contributions under the recovery plan by mid-September," the board said in its statement.

Looking at its trading, the digital transformation service provider said that following an "encouraging start" to its fiscal second half ending 31 July, organic net revenue for the period was expected to fall around 20% year-on-year due to the effects of the Covid-19 pandemic.

Including the Spire acquisition, it was expecting net revenue in the second half to decline about 10% over last year, with a similar level of profitability anticipated as was seen in the first half.

The board said that, while the pipeline had improved in the last 60 days, it was expecting the financial headwinds of the Covid-19 pandemic to continue into the first half of the new financial year starting on 1 August.

"Despite the near-term contractions in client spend, the pandemic has underlined the market's need for our digital capabilities," the board said in its statement.

"We have begun to see early indications of existing and new clients investing again in the digital transformation of their businesses, particularly in the areas of e-commerce, artificial intelligence and cloud and data modernisation."

It said the strong start to the second half was driven by returns from its 'connective' strategy and partner channel investments, which would continue to drive performance.

"The board remains optimistic regarding medium and long-term client demand for the company's digital transformation services."

Kin and Carta said it would update the market further at its preliminary results for the year ending 31 July in November.

At 1156 BST, shares in Kin and Carta were down 7.72% at 51.4p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Kin and Carta Market Data

Currency UK Pounds
Share Price 128.40p
Change Today 0.000p
% Change 0.00 %
52 Week High 136.00
52 Week Low 58.00
Volume 2,253,728
Shares Issued 177.93m
Market Cap £228.46m
RiskGrade 82

Kin and Carta Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
20.82% below the market average20.82% below the market average20.82% below the market average20.82% below the market average20.82% below the market average
78.57% above the sector average78.57% above the sector average78.57% above the sector average78.57% above the sector average78.57% above the sector average
Price Trend
53.71% above the market average53.71% above the market average53.71% above the market average53.71% above the market average53.71% above the market average
44.68% above the sector average44.68% above the sector average44.68% above the sector average44.68% above the sector average44.68% above the sector average
Income Not Available
Growth
19.29% below the market average19.29% below the market average19.29% below the market average19.29% below the market average19.29% below the market average
22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Kin and Carta Dividends

  Latest Previous
  Final Interim
Ex-Div 21-Nov-19 11-Apr-19
Paid 17-Dec-19 10-May-19
Amount 1.30p 0.65p

Trades for 28-Mar-2024

Time Volume / Share Price
13:54 14 @ 128.40p
13:54 108,260 @ 128.40p
13:54 50,000 @ 128.40p
13:54 25,103 @ 128.40p
13:15 1,500 @ 128.40p

Kin and Carta Key Personnel

CFO Chris Kutsor
CEO Kelly Manthey

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