NEWS2 April 2020

Kin + Carta instigates cost reductions amid Covid-19 crisis

Covid-19 Financials News UK

UK – Digital transformation company Kin + Carta has announced a cost reduction programme, including redundancies and furloughs, as well as voluntary pay reductions for execs and staff to weather the coronavirus epidemic.

In its trading statement the business said supporting clients remained its priority and that as remote working was already widespread practice it has been able to continue to deliver client projects.

While some projects had been scaled back or suspended the company said "78% of our revenue is from multi-year client engagements and as such we are seeing many large digital transformation programmes continue as planned".

But with the ongoing uncertainty, the board will focus on "conserving cash and maintaining maximum financial flexibility" and so had initiated its cost reduction programme across the business.

It has also recommended pulling its interim dividend payment of 0.65 pence per share, which would have been payable on 7 May 2020. 

Looking forward it said: "while we are reassured by the longevity and depth of our client relationships and our clients’ continuing  need for digital transformation services, further highlighted by the Covid-19 crisis, the current situation causes us to be cautious about the near-term prospects."

@RESEARCH LIVE

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