Kin And Carta Share Discussion Threads

[kalai1] 12/10/2022 14:51

Kin and Carta Plc posted FY22 results this morning reporting continued strong growth with net revenue up 48% to £190.3 million driven primarily by organic growth. The Group has a record year-ending pipeline of £176 million, up 74% YoY. Adjusted profit before tax from continuing operations grew 65% to £17.1 million, adjusted EPS from continuing operations increased by 82% from prior year to 8.7p. The balance sheet strengthened with net debt reduced to £0.5 million. And valuation is starting to look quite reasonable following a 40%+ correction in the share price over the past 12 months. Forward PE ratio at 18.3x is now top half for the Software & IT Services sector. The outlook provided was also pretty upbeat with management expecting FY23 organic growth in constant currency of 15%-20%, with an additional 6-7% growth from the annualisation of the prior year acquisitions. There is robust growth here and a reasonable price. Share price lacks momentum, there is no obvious rush to buy, but KCT is certainly a share worth monitoring...

...from WealthOracle

hxxps://wealthoracle.co.uk/detailed-result-full/KCT/579

[prokartace] 07/10/2022 09:57

Something happening here

[prokartace] 12/8/2022 14:49

Wow, undervalued and totally unsupported!

[prokartace] 06/7/2022 13:52

So does anyone have anything to say about this 'undervalued media company' now its 30% cheaper?

[capitalist] 24/3/2022 10:05

Any comments on the half year results?

[km18] 21/2/2022 18:24

...from last year...

Company overview:
Kin & Carta is a digital transformation services provider, engaged in applying data and technology to assist clients in various parts of their business. The company works with clients from various sectors, such as healthcare, financial services, B2B, consumer, agriculture, and transportation.
The company is reporting strong trading, while exploiting successfully improving trends. Expectations are for year-end net revenue of £150m, generating a healthy 8% growth on 2020 and profit before tax at £14.5m – 38% more than one reported in 2020. The backlog of orders is expected to provide another 20% growth in revenue, combined with improvement in operating margin of around 12-14%. The health of the balance sheet is supported by a communique from the US government stating that £3.7 million of the £6.7 protection program loan has been forgiven. Last but not least, company has seen significant improvement in defined benefit plan’s portfolio, decreasing deficit by 70% to £8.8m.

Short analysis (FY2020):

Cash FY 2020 increased by 10%
Net debt was positive, as company’s cash did not cover total long-term debt
CA/CL  = 1.46
Cash ratio = 0.57
P/S = 3.33 outperforming the average for the sector
BV ps = 35.4
Operating loss of £30.7m is a result of a large unusual expense...

from WealthOracleAM

[sphere25] 10/2/2022 08:30

Taken a few early here.

The market is going to like those numbers. Price is beaten down too much based on those numbers. KCT should at least form a bottom, if not an oversold move.

All imo
DYOR

[kennewil] 01/12/2021 14:00

I recommend looking at the chart for the last year. 300% not enough?

[slim9] 07/9/2021 15:21

Hello , creeping up nicely. Doubled this Year & noticed last night it was one of Marlborough Unit trust Top Ten Holdings.




S

[irenekent] 15/6/2021 10:26

Been here since SIV. Also glad.

[kennewil] 15/6/2021 10:00

Been hanging on to them since St Ives days. Now glad I did.

[prokartace] 15/6/2021 09:34

does anyone still hold?

[kennewil] 15/6/2021 08:40

Nice trading update.

[sphere25] 10/3/2021 12:51

Ordinarily looking at those results, you'd think the price was up with events but then there are snippets like this which the market is clearly getting excited about:

"As of the end of February, our 90-day net revenue backlog is 77% larger than at the start of our fiscal year (1 August 2020) and 27% larger than February 2020 (before the start of the pandemic).

We are seeing increases in demand for our services across the board. Additionally, our new Data Transformation offering within the Create pillar has been accelerating rapidly, as evidenced by our Pepsi win at the beginning of the fiscal year, which is now contracted with an 8-figure annual spend"

It is value here though?

I was a happy buyer down near 100p not up here at 160p. Ideally, I would want a big patch of weakness to scale into, but it doesn't matter what I say, the market is very happy to pay premium prices when such bullish spirits exist out there.

If we look at the near majority of results that have come out recently, can't say I have found many where there was glaring value. Furthermore, despite earnings recoveries back to pre-covid levels happening in 2022/2023, alot of the reporting companies have seen their prices already close the chart gaps back toward pre-covid levels.

It looks like the market in the UK could be content to sit in ranges for alot of these companies awaiting further news, particularly seen as the US tech sell off hasn't caused any leveraged event to spread into other markets.

An eye naturally needs to be kept on the behaviour in the US, because the downside risk has to always be assessed, but there are plenty of short term trades providing fruitful returns without having to chase what appears to be fair/full valuations judging by the bulk of recent company reports so far in reporting season.

All imo
DYOR

[irenekent] 10/3/2021 09:24

Encouraging results but still no dividend.

[fillipe] 10/3/2021 08:42

Good number of buy trades going through today, all the way since the open.

f

[jimbomorry] 08/3/2021 19:45

Could be waking up from retracement. Volume decline ending and 7%+ price rise today. Results due on 10th March.

[sphere25] 22/1/2021 15:42

168p to 145p - wow!

It would appear share prices do go down a reasonable amount. Who would have thought that eh? :-)

It would also appear that overbought does eventually mean OVER BLOOMING BOUGHT in some out there. It only takes the RSI to break first though!


Looks like we're only going to get properly short term clobbered when the Yanks force their excesses over onto us. It's a shame we can't be independent and always get hit when they unwind their euphoria.

Still, being a net seller in this market will have KCT as one of many on the shopping list when it happens.

All imo
DYOR

[prokartace] 13/1/2021 16:01

If it corrects another 12p I will buy ti back

[sphere25] 11/1/2021 15:28

Over over bought? Possibly over over over bought?

Well done to everyone for hanging on here, done miles better than I did. I actually thought a 20-30% move could be on when highlighting around that 105p mark. No way did I think it would move double that so quickly.

The RSI is at historic record levels for the KCT chart (post SIV), how close is that to 100! Ignore that spike at the front and even if you look at SIV, it rarely has gone that high. Have to go back to almost early 2000's. If it goes any higher, RSI might break and a replacement indicator might have to be brought in.

At least there is a proper business here with fundamental backing. There are alot of exuberant spikes out there backed by jam or not very much which are bonkers overbought. Can't even safely short some because the market could stay irrational longer than solvency. I'm sure Tesla shorters will testify to that piece of wisdom.

Anywho, will have a look in here again and others when prices correct. Ready to pick up some on weakness rather than chase excessive spikes.

No idea when the short term party stops.

All imo
DYOR

[prokartace] 08/1/2021 11:20

If it was overbought then, what is it now? Even I, who has held this for 2 years am going to jump ship