K3 Business Technology Group PLC Trading Update (4488M)

TIDMKBT

RNS Number : 4488M

K3 Business Technology Group PLC

12 January 2023

AIM: KBT

12 January 2023

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group" or "the Company")

Provider of business-critical software solutions focused on fashion and apparel brands.

Trading Update

K3, which provides business--critical software solutions focused on fashion and apparel brands, is pleased to announce an update on trading for the financial year ended 30 November 2022.

The Group continued to make very encouraging progress against its strategic plan and K3's second half performance is in line with management expectations.

Group revenue for the year is expected to be ahead of last year, with recurring and predictable revenue also higher. A key measure is the total annualised recurring contract value of software licences from Strategic Products, and this has made a significantly higher contribution year-on-year; we looking forward to giving more detail at the time of the final results release. This rise reflects existing customers expanding the number of their product licences as well as new customer wins.

Adjusted EBITDA for the financial year FY 2022 is expected to be no less than GBP5.0m (2021: GBP4.4m). The net cash position is expected to close at c. GBP7.1m (2021: GBP9.0m). Cash flows in the second half benefited from a 98% renewal rate of product licence and maintenance and support renewals (2021: 98%).

The new financial year has started well, especially for Strategic Products, with both new logos customers and expansion, and cash generation is trending higher year-on-year.

Final results for FY 2022 are expected to be published towards the end of March 2023.

Enquiries:

 
 K3 Business Technology   Marco Vergani, Chief Executive 
  Group plc                Officer 
 www.k3btg.com            Robert Price, Chief Financial      T: 0161 876 4498 
                           Officer 
 finnCap Limited          Julian Blunt (Corporate Finance)   T: 020 7220 0500 
  (NOMAD & Broker)         Sunila De Silva (Corporate 
                           Broking) 
 
 KTZ Communications       Katie Tzouliadis/ Dan Maloney      T: 020 3178 6378

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTSFFFWFEDSEEF

(END) Dow Jones Newswires

January 12, 2023 02:00 ET (07:00 GMT)

K3 Business Technology (LSE:KBT)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024