Kin + Carta PLC has cut revenue guidance after a drop in new business as clients became hesitant to commit to new contracts.
The global digital transformation business said a number of external factors have combined to reduce its expectations for the year.
Chief executive officer Kelly Manthey commented: “Although we're maintaining a pattern of quarter by quarter net revenue growth, it isn't as strong as we'd expected. The market is more difficult with clients cautious about committing to large programme spends.”
Several contracts have commenced later than forecast.
As a result, the company said financial year 2023 net revenue growth is expected to be flat to +2% over the previous year. The revised revenue guidance also reflects recent currency movements which results in net revenue headwinds in the second half of around £3mln versus the previous market forecast.
Kin and Carta expects fourth-quarter revenue between £47mln to £49mln.
Second-half adjusted operating margin is expected to improve over the first half as a result of cost reductions and financial year 2023 adjusted operating margin is expected to be c.8-9% with adjusted EBITDA margin around 10-11%.