K3 Business Technology Group PLC Trading Update (4025W)
22 Décembre 2021 - 07:59AM
UK Regulatory
TIDMKBT
RNS Number : 4025W
K3 Business Technology Group PLC
22 December 2021
AIM: KBT
K3 BUSINESS TECHNOLOGY GROUP PLC
("K3" or "the Company" or "the Group")
TRADING UPDATE
K3, which provides business--critical software solutions,
focused on fashion and apparel brands, is pleased to provide the
following trading update for the financial year ended 30 November
2021.
Trading in the second half of the financial year to 30 November
2021 has been in line with management expectations. Adjusted EBITDA
from continuing operations for the year is expected to be higher
than last year with stronger operational cash generation. This
follows a strong end to the financial year, particularly within the
fashion and apparel business, with the signing of a number of new
clients and upsell renewals with existing clients. New clients
included a Swedish clothing brand for children, a German e-commerce
fashion and homeware brand, and a Scandinavian designer brand. The
SYSPRO and Global Accounts lines of business also continued to
perform well.
In a transformational year, K3's balance sheet has been
significantly strengthened, with net cash at 30 November 2021
substantially ahead of the same point six months ago at
approximately GBP9.0 million (31 May 2021: GBP4.4 million and 30
November 2020: net debt of GBP1.9 million).
The Board views this performance, in a challenging market, as
encouraging and K3 starts the new financial year in a notably
stronger position. It is now well-placed to build on the
foundational changes implemented over the past 12 months, which
included:
- the appointment of Marco Vergani as Chief Executive Officer
in March 2021;
- the strengthening of the senior management team with
key commercially experienced hires;
- the development of a clear strategic plan to drive future
growth, with a focus on mid-market and enterprise fashion
and apparel brands;
- the sale of two non-core businesses, Starcom Technologies
Limited in February 2021 and the Sage business in early
October 2021, which were sold for GBP14.7m and GBP1.7m
respectively; and
- an internal reorganisation of the business completed
in the second half, which included a comprehensive restructuring
of the Group's go-to-market team. The reorganisation
has reduced costs, established stronger US channel partner
support, and improved the management of certain older,
niche products that are in a process of decline.
Strategic Plan
The new strategic plan has identified growth opportunities
across K3's core solutions, historically reported within three
segments, Own IP, Global Accounts and Third-party products.
Strategic Own IP products include fashion, apparel and omnichannel
retail solutions, which are all underpinned by the Group's
cloud-native unified commerce platform, K3|imagine.
The new focus is to leverage the Group's strong industry and ERP
heritage to provide a powerful end-to-end (Concept-to-Consumer) set
of solutions for K3's chosen markets of fashion, apparel, designer
and related large retail brands. Within these sectors, there are
exciting opportunities, particularly serving the growth themes of
Sustainability, Business Insights and Omnichannel. K3 will address
these with the current strategic product offering, as well as
through buy, build and partner models to further accelerate
growth.
Ongoing investment will be funded from internal cash generation,
and is being allocated strictly in line with commercial objectives
to:
- deepen K3's fashion offering;
- enhance K3|imagine, which supports all the Group's strategic
solutions;
- target growing demand in SYSPRO's market for larger transformational
projects in advanced and specialized manufacturing and
distribution industries; and
- support the continuing international expansion of the
Global Accounts business' client base.
Publication of preliminary results
Preliminary results are scheduled to be published in late March
2022 when a further update on current trading will also be
provided.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Enquiries:
K3 Business Technology Marco Vergani, CEO T: 0161 876
Group plc Rob Price, CFO 4498
finnCap Limited (NOMAD Julian Blunt/ James Thompson T: 020 7220
& Broker) (Corporate Finance) 0500
Richard Chambers / Sunila
de Silva (Corporate Broking)
KTZ Communications Katie Tzouliadis/ Dan Mahoney T: 020 3178
6378
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END
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