REG - K3 Bus Tech Grp PLC - Board Changes

K3 Business TechnologyAnnouncement

30/10/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231030:nRSd6162Ra&default-theme=true

RNS Number : 6162R  K3 Business Technology Group PLC  30 October 2023

AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

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

 

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

 

Board Changes

 

K3, which provides business‐critical software solutions focused on fashion
and apparel brands, announces that Marco Vergani, Chief Executive Officer, is
stepping down from the Board and the Company, and that Tom Crawford,
Non-executive Chairman, is taking up the role of Executive Chairman. These
Board changes, which take effect today, come about as a result of the
implementation of a new management structure, with the Group's unit heads
reporting directly to the Board.

 

The management changes create new reporting lines and devolve greater
responsibility to the leadership teams within the Group's businesses, which
are separately managed and respectively address different market sectors. It
reflects the Board's strategy to further simplify operations, more effectively
address the opportunities within market sectors, and to drive shareholder
value.

 

The Group's overall performance since August, when the Company last commented
on trading, remains on track to generate an adjusted operating profit in line
with the market forecast. The final quarter of the financial year typically
generates significant profit and cash flows from annual renewals of software
licences and support and maintenance contracts. This remains the case in the
current financial year ending 30 November 2023, and the level of renewals is
expected to be at c. 98% as in previous years.

 

The Board remains focused on the transition to higher quality recurring
earnings, while continuing with cost discipline and operational
simplification. The cost base at Global Accounts is being brought into line
with the reduction in activity, as previously reported in August, while the
uptake of the Group's flagship K3 Fashion product remains strong with 25%
growth to date in annualised recurring revenue across strategic fashion
products.

 

The Board would like to place on record its thanks to Marco for his
contribution to K3, and in particular his role in resetting the Group's
strategic direction and goals, including at the Fashion business unit and his
decision on, and delivery of, the current decentralisation policy. He leaves
with the Board's best wishes for the future.

 

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 Group plc      Tom Crawford, Executive Chairman      c/o KTZ Communications
 www.k3btg.com (http://www.k3btg.com)  Eric Dodd, Chief Financial Officer    T: 020 3178 6378

 Cavendish Capital Markets             Julian Blunt (Corporate Finance)      T: 020 7220 0500

 (NOMAD & Broker)                      Sunila De Silva (Corporate Broking)

 KTZ Communications                    Katie Tzouliadis/ Robert Morton       T: 020 3178 6378

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  BOANKOBNCBDDBKB