Shares in Kin and Carta slide as investment eats into profit
Shares in Kin and Carta dropped roughly 13 per cent after the digital transformation company warned on profits for the full year.
The London-headquartered firm said its pre-tax profit would be marginally lower than expectations after it upped its annual investment from £2m to £3m.
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Kin and Carta, which rebranded from St Ives Group last year, said the funds were spent on geographic expansion and building central sales, marketing and partnership functions.
The firm has also restructured its strategy unit to form Kin and Carta Advisory, and said it is continuing to move away from low-margin business and streamline its divisions.
Kin and Carta said it is also mulling acquisitions in new markets as part of its expansion strategy.
“Innovation continues to power ahead and is increasingly recognised for the market leading solutions it brings to its clients,” said chief executive J Schwan.
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“The work to reposition our strategy and communications pillars, as well as the increased level of investment in the connective growth platform will drive sustainable profitable growth in the new fiscal year.”
Kin and Carta forecast a double-digit increase in net revenue for the full year, and expects to return to growth in 2020.
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