The CEO of mental health support platform Kooth plc is to step down.
Kooth is NHS England’s largest single access provider for mental health support for under 18s.
It is also growing its presence in the United States further following the award of a $188m four-year contract to support up to 6m young people in California in 2023.
However CEO Tim Barker has informed its board of his intention to seek a new executive role during 2025. He will therefore step down as CEO at the conclusion of its 2025 Annual General Meeting, which is likely to be held in June.
Barker joined Kooth as CEO in January 2020 and oversaw the IPO of the business as well as multiple significant contract wins in the US, including the transformational California partnership.
Kate Newhouse, who joined the firm as COO in May 2020, will succeed him as CEO. She will serve alongside Barker as joint CEOs in the first half of this year.
Newhouse was previously CEO of Blenheim Chalcot and Doctor Care Anywhere.
“On behalf of the board I’d like to thank Tim for his commitment and drive over the last five years, which have left Kooth significantly stronger than when he took on the role of CEO,” said Peter Whiting, chair.
“His focus in particular on expanding Kooth in the US has transformed the business, both financially and culturally. I look forward to working with Kate to continue this growth and help cement Kooth as the global leader in digital mental well-being.”
Kooth also reported that for the financial year ended 31st December 2024 its revenue is anticipated to be in line with consensus market expectations of £65.8m (2023: £33.3m).
Adjusted EBITDA is expected to be at or ahead of the top of the range of analyst forecasts of £12.7m (2023: £2.3m), which it said was helped by certain items which are not expected to recur in the current year.
It also revealed that it has agreed terms for a new pilot contract with the State of New Jersey valued at $1.45m. This will see it provide mental health support via its Soluna platform to school districts in the state, reaching 50,000 students aged 13-18. The pilot went live on 7th January.
The company says it continues to hold negotiations, which are expected to be concluded in Q1, regarding a second pilot contract in the US.
It added that trading is in line with expectations with the renewal of longer-term contracts with NHS trusts and local authorities, including in Cornwall and the Isle of Man.
The company has grown its unaudited cash position to £21.5m during 2024, from £11m at the end of 2023, and maintains an undrawn working capital facility of $9.5m.
“Kooth has made solid progress throughout 2024, continuing to deliver vital mental health services across the US and UK. We’ve continued to prioritise business development and have expanded our presence across the US via new partnerships,” said Barker.
“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.
“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.”