By Anthony O. Goriainoff
Kin & Carta PLC said on Friday that the US government had confirmed it had forgiven a further 3.7 million pounds ($5.2 million) of the GBP6.7 million Wage Protection Program loan.
The UK digital transformation consultancy said the amount will now be recognized as other revenue for the second half of the year ending 31 July.
In 2020, Kin & Carta accessed the PPP loan to mitigate the effects of the Covid-19 pandemic.
The company said that in the first half of fiscal 2021 it invested in a number of projects with clients and absorbed the employment and delivery costs of projects related to staff retention and to increase client goodwill. The company said these costs were offset by the £4.5 million PPP loan forgiveness offset credit, of which £800,000 was recognized in the first half.
“The remaining GBP 1.8 million loan balance after forgiveness and net of the effects of the foreign currency revaluation will be repaid in May 2022,” the company said.
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