LONDON, UK: Kin and Carta plc (LON: KCT) has now successfully completed the divestments of its two remaining venture businesses, Edit Agency Limited (Edit) and Relish Agency Limited (Relish), for a total of £18.6 million in cash before costs and customary adjustments for debt and working capital.
Kin and Carta plc (LON: KCT) is the international digital transformation (DX) consultancy.
The net proceeds of the disposals move the Company into a net cash position, further strengthening the balance sheet and capacity for selective acquisitions.
Edit Agency combines martech, customer data and media to drive growth for clients and has been bought by The Salocin Group, a UK-based marketing services group. The consideration of £13.35 million before costs and customary adjustments for cash, debt and working capital was received in full on completion.
Relish Agency is a product sampling agency specialising in the beauty and fast-moving consumer goods sectors and has been bought by leading logistics specialist, Whistl. The consideration of £5.25 million before costs and customary adjustments for cash, debt and working capital was received in full on completion.
The financial results of Edit and Relish for the period up to divestment will be reported as discontinued operations within Kin + Carta’s FY22 financial statements. Edit contributed net revenue of £10 million and adjusted operating profit of £1.9 million in FY21. Relish contributed net revenue of £2.5 million and adjusted operating profit of £1.0 million in FY21.
J Schwan, Kin + Carta CEO said “These divestments mark the culmination of our journey to a pure-play DX focused business. The cash received further strengthens our balance sheet and adds fuel for additional acquisitions. We expect further M&A in the fiscal year as part of our growth strategy and remain optimistic in our aspiration to double organic net revenue from FY21 over the next four years.”