Digital transformation firm Kin+Carta said some of its clients have scaled back or suspended their projects amid the coronavirus outbreak.
The company was commenting on the impact of COVID-19 on its business and the steps it is taking.
Kin+Carta response
The virus has impacted markets around the world, creating unexpected discontinuity and uncertainty for all businesses.
“This has led a few of our clients to scale back or suspend some projects, alongside a partial slow down in our pipeline conversion”, the firm said in a stock market statement.
“78% of our revenue is from multi-year client engagements and as such we are seeing many large digital transformation programmes continue as planned.
“Until the scale and duration of disruption is more clear, we will not be providing further guidance.
Priorities
Kin + Carta said supporting its clients remains its priority; and as such has taken measures to allow it to continue serving them during this challenging time.
“The nature of our work in digital transformation is core to our clients’ businesses. They have welcomed our support and our ability to deliver projects remotely”, it said.
“With our clients now largely functioning online, the digital interface between the client and their customer has never been more important.
Outlook
The firm said that whilst it is reassured by the longevity and depth of its client relationships and its clients’ continuing need for digital transformation services, further highlighted by the COVID-19 crisis, the current situation causes it to be cautious about the near-term prospects.
“We continue to take prudent steps to reduce costs, conserve cash, and protect our staff while ensuring we continue to support our clients and protect our core capabilities.
“We expect to be well positioned when the business climate recovers.”
Kin + Carta’s shares were down more than 8% at 56p on Wednesday morning.