REG - K3 Bus Tech Grp PLC - Trading Update

K3 Business TechnologyAnnouncement

20/12/2023 07:00

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RNS Number : 3725X  K3 Business Technology Group PLC  20 December 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.

 

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 2023.

 

Adjusted operating profit* for the year is expected to be at least in line
with market expectations, and the Group is expected to have closed the
financial year-end with cash balances at £8.3m, which is ahead of market
expectations. These results are despite the ongoing lower demand and activity
in Global Accounts, as previously reported.

 

The Group's profit and cash generation is traditionally stronger in the second
half of the financial year, benefiting from software licence and maintenance
and support contract renewals, particularly at NexSys, where renewals were
c.98%, which is in line with prior years (2022: 98%). Cash generation also
benefited from greater discipline on costs and investing activities, although
flows in the second half were reduced by cash restructuring costs.

 

The Group's flagship K3 Fashion product set delivered over 25% growth in
annualised recurring revenue on a constant currency basis.

 

The Board remains committed to ongoing operational simplification, and the
leadership and operational changes, put in place in the final quarter of the
financial year, are enabling greater cost discipline. The delegation of
responsibility to the leadership teams will also better capture the growth
opportunities within each business unit, which should ultimately lead to
greater shareholder returns.

 

Final results for FY23 are expected to be published towards the end of March
2024.

 

Change of Name of Nominated Adviser and Broker

 

The Company also announces that its Nominated Adviser and Broker has changed
its name to Cavendish Capital Markets Limited following the completion of its
corporate merger.

 

*Adjusted operating profit is calculated before amortisation of acquired
intangible assets, exceptional reorganisation costs and share based payment
charges.

 

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, Dan Hodkinson           T: 020 7220 0500

 (NOMAD & Broker)                      (Corporate Finance)

                                       Sunila De Silva (Corporate Broking)

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

 

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