Kin and Carta shares jumped on Thursday after the global digital transformation consultancy said profits will be ahead of current market expectations.
Kin and Carta shares were 13% higher at 8.35am on Thursday.
Kin and Carta expects flat revenue growth but higher profits for the fiscal year ending July 2023, the digital transformation consultancy said on Thursday.
The company predicts adjusted operating profit will be 10.5% to 14% ahead of market expectations thanks to a realigned operating model with lower costs. Adjusted operating profit margin is forecast at 9.3% to 9.6%.
Kin and Carta’s net revenue is projected to be around £192 million for the full fiscal year, roughly even with the prior year. Revenue in the fourth quarter hit £48 million, in line with expectations.
While client engagement remains strong, the company said it continues to manage the business cautiously amid ongoing sector headwinds.
Kin and Carta will announce full fiscal year results and its outlook for the new fiscal year in October. The company enters the new year with a healthy backlog and expects further sequential revenue growth in the first quarter.
“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 Q1 underpinned by a solid foundation of enterprise clients,” said Kin + Carta’s Chief Executive Officer, Kelly Manthey.