Kin & Carta
The Covid-19 pandemic saw a shift to remote working. As restrictions are slowly lifted, many organisations are grappling with how their IT systems can support future models of working and reaching customers.
This re-appraisal of IT systems has led to a boom in demand for the $280bn digital transformation (DX) consulting market which is forecast to grow more than 20% p.a. out to the middle of this decade.
Within the UK, Kin & Carta is ideally placed to benefit from the demand for DX services. Kin & Carta has pivoted from its legacy publishing business to a digital consulting firm with more than 1,600 staff, of which 900 are software engineers. Its blue-chip client base includes household names like NatWest, Lexus and Pfizer.
We believe, given the demand for digital transformation services, Kin & Carta could exhibit strong revenue growth and rising margins. Moreover, given its scale we believe Kin & Carta can consolidate a fragmented market by buying smaller consultancies and providing them with the tools to grow.
Kin & Carta is held in the Aegon Ethical Equity Fund, UK Opportunities Fund and UK Smaller Companies Fund.