Kooth CEO steps aside, annual profits to beat forecasts

(Sharecast News) - Kooth, the youth digital mental healthcare company, has reported that its boss Tim Barker is to step down later this year, ahead of its annual results which are expected to show that profits beat market forecasts. Barker, who has been chief executive since January 2020, is leaving to seek another executive role elsewhere, and will be replaced by chief operating officer Kate Newhouse in June. Until that time, both execs will run the CEO role together.

"Our strong cash position will provide a solid foundation to continue the Company's growth trajectory throughout 2025, providing more people with mental health support in their moment of need," Barker said in a statement.

"With this in mind, I believe now is the right time to hand over the reins and I look forward to working with Kate over the coming months."

The news came alongside a pre-close trading update for 2024, which showed that annual revenues would be in line with consensus expectations of £65.8m, nearly double the £33.3m generated in 2023.

However, adjusted EBITDA is expected to be "at or ahead of the top of the range of analyst forecasts" of £12.7m, compared with £2.3m previously. Nevertheless, Kooth highlighted that the bottom line was helped by "certain items which are not expected to recur in the current year".

Kooth's shares were up 0.3% at 174p by 1019 GMT.