Amortisation, impairment and other considerations left Kin and Carta (KCT), formerly known as St Ives, nursing a statutory loss in the 53 weeks to 3 August. However, having disposed of its market activation and books segments, it has now achieved its ambition of moving away from its legacy print business towards digital transformation.
The business model is now clearly focused on providing creativity, data and technology to help companies invent, operate and market new products and services. The new-look business model, which has involved merging several brands into one new communications operation called Edit, is already paying off, with several large customer wins. Adjusted profits from continuing operations jumped 38 per cent to £18.5m.
Major companies are in growing need of guidance to prepare them for the changes brought by an increasingly digitalitalised environment, and the company is fast-tracking investment in its central marketing and sales capability. And while this may impair earnings in 2019, it still expects to see mid-single digit revenue growth.
Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to 31 July 2019 of £19.9m and EPS of 10.2p (from £18.5m and 10.1p in 2018).
| KIN AND CARTA (KCT) | ||||
| ORD PRICE: | 94.5p | MARKET VALUE: | £145m | |
| TOUCH: | 93.2-94.5p | 12-MONTH HIGH: | 104p | LOW: 94p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 53p** | NET DEBT: | 32% | |
| Year to 3 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 331 | 11.9 | 8.6 | 7.2 |
| 2015 | 345 | 8.7 | 4.4 | 7.8 |
| 2016 | 368 | -5.7 | -5.9 | 7.8 |
| 2017 | 163 | -19.2 | -12.6 | 1.95 |
| 2018* | 178 | -31.7 | -22.1 | 1.95 |
| % change | +9 | - | - | |
| Ex-div: | 22 Nov | |||
| Payment: | 17 Dec | |||
| *53-week period **Includes intangible assets of £116m, or 76p a share | ||||
