(Correcting reason for Kooth PLC’s revenue increase and value of contract.)
Kooth PLC on Tuesday said its revenue for the year ended December 31 rose amid business opportunities in the US, but administrative expenses led to its loss widening.
The London-based digital mental health platform said its 2022 pretax loss widened to £831,000 from £720,000 the year prior.
This attributed to a 20% increase in administrative expenses to £14.8 million from £12.3 million. Kooth said these costs came mainly from its expansion into the US, as the company has had staff-related as well as legal expenses.
Nevertheless, Kooth’s revenue rose by 21% to £20.1 million from £16.7 million. Business in the US contributed to revenue growth, as Kooth won its first contract in the country for a project with the State of Pennsylvania, worth $3.0 million.
An expansion in Kooth Adult services and new children and young people contracts also drove this increase, the company said.
Kooth did not recommend a dividend, unchanged from the previous year, and noted that it does not anticipate proposing one next year either.
Looking ahead, Kooth said its presence in the US market offers the company a ‘significant long-term opportunity’. It expects to finalise the terms of a contract with the Californian government, as Governor Gavin Newsom is investing $4.7 billion into tackling children’s mental health in the state.
Kooth said this will place its revenue ‘ahead of 2023 market expectations.’
Chief Executive Officer Tim Barker said: ‘Kooth is uniquely positioned to respond to long-term demand for digital mental health services in the US and UK, with a proven track record and strong efficacy profile, strong recurring revenue and a net cash position.
‘This is shown by our significant contract win in California, in March 2023, as part of California Governor Gavin Newsom’s $4.7 billion investment in youth behavioural health. As we enter 2023, our model, strategy, and market position in the UK and US, coupled with the talent and dedication of our employees, give us confidence of further progress this year.’
Shares were down 1.8% at 230.70 pence in London on Wednesday morning.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
