REG - K3 Bus Tech Grp PLC - Trading Update

K3 Business TechnologyAnnouncement

12/01/2023 07:01

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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
£5.0m (2021: £4.4m). The net cash position is expected to close at c. £7.1m
(2021: £9.0m). 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 Group plc      Marco Vergani, Chief Executive Officer
 www.k3btg.com (http://www.k3btg.com)  Robert Price, Chief Financial Officer   T: 0161 876 4498

 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.

 

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