Kin and Carta PLC Divestment for GBP18 million cash (2983N)
September 29 2021 - 1:00AM
UK Regulatory
TIDMKCT
RNS Number : 2983N
Kin and Carta PLC
29 September 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
29 September 2021
Kin and Carta plc
Divestment for GBP18 million cash
Kin and Carta plc (the "Company" or "Kin + Carta"), the
international digital transformation ("DX") consultancy, has
divested Incite Marketing Planning Limited and Incite New York LLC
(together, "Incite") to Strat7, a leading provider of strategic
marketing and planning services. Incite provides research, planning
and strategic consultancy services for clients ranging from insight
professionals and marketing leaders through to the executive and
investor community.
The consideration receivable is GBP18 million cash, net of
customary adjustments for cash, debt and working capital, of which
GBP17 million was paid upon completion, and a deferred amount of
GBP1.0 million is payable on 31 July 2022.
As a consequence of the divestment, the results of Incite will
be reported as discontinued operations within Kin + Carta's results
for the year ended 31 July 2021 ("FY21"). Incite contributed net
revenue of GBP11.7 million and adjusted operating profit of GBP2.2
million in FY21, and had gross assets of GBP8.0 million at 31 July
2021.
In the short term, the net proceeds of the disposal will be used
to pay down debt, further strengthening the balance sheet. As part
of its growth strategy, Kin + Carta continues to pursue a robust
funnel of DX acquisition candidates that can be funded by this
strengthened balance sheet.
J Schwan, Kin + Carta CEO said "Incite is a quality business and
I wish its management and staff well. The disposal is executing on
our ongoing strategy to focus on our core digital transformation
services. We anticipate further disposals from our Ventures
division in due course that will help facilitate the pipeline of
acquisition opportunities we are currently assessing."
Enquiries:
Kin + Carta
J Schwan CEO
Chris Kutsor CFO +44 (0) 207 928 8844
Powerscourt
Elly Williamson / Jane Glover +44 (0)7970 246 725
Numis Securities Limited +44 (0)207 260 1345
Nick Westlake / Matt Lewis
Peel Hunt LLP +44 (0) 20 7418
Edward Knight/John Welch 8900
Important notices
This announcement contains inside information and is issued on
behalf of the Company by Daniel Fattal, Company Secretary.
Cautionary statement regarding forward-looking statements
This Announcement may contain "forward-looking statements" with
respect to certain of the Company's plans and its current goals and
expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they are based on numerous
assumptions regarding the Company's present and future business
strategies, relate to future events and depend on circumstances
which are or may be beyond the control of the Company which could
cause actual results or trends to differ materially from those made
in or suggested by the forward-looking statements in this
Announcement, including, but not limited to, domestic and global
economic business conditions; market-related risks such as
fluctuations in interest rates; the policies and actions of
governmental and regulatory authorities; the effect of competition,
inflation and deflation; the effect of legislative, fiscal, tax and
regulatory developments in the jurisdictions in which the Company
and its respective affiliates operate; the effect of volatility in
the equity, capital and credit markets on profitability and ability
to access capital and credit; a decline in credit ratings of the
Company; the effect of operational and integration risks; an
unexpected decline in sales for the Company; inability to realise
anticipated synergies; any limitations of internal financial
reporting controls; and the loss of key personnel. Any
forward-looking statements made in this Announcement by or on
behalf of the Company speak only as of the date they are made. Save
as required by the Market Abuse Regulation, the Disclosure Guidance
and Transparency Rules, the Listing Rules or by law, the Company
undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions it may make to these
forward-looking statements that may occur due to any change in its
expectations or to reflect events or circumstances after the date
of this Announcement.
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