Shares in “digital transformation” consultancy Kin & Carta plummeted this morning after it released a profit warning.
The business now expects revenue to grow by between 8% and 12% for the year to 31 July, after first-half revenue came to £85.6 million. The business had previously expected growth of 21-27%.
The company had also expected operating profit margins to improve to around 13%, but now expects these to be level with prior years, when it was just below 10%.
While the business lowered its expectations for the current year, it said that its long-term targets remain unchanged.
Chief executive Kelly Manthey said: “Despite macro headwinds tempering short-term growth across the industry, we remain focused on our long-term strategy that prioritises enterprise clients with high quality, resilient revenue, delivered with higher margin nearshore delivery.
“Our record backlog demonstrates the ongoing demand for our services. The measures that we are currently implementing in the business give me confidence that we are continuing to build a firm platform for future growth.
“Our ambition for Kin & Carta has not changed.”
Shares in Kin & Carta are down 30% this morning to 130.6p.
