Business sales specialist to float on AIM

K3 Capital Group, the Bolton-based group behind company sales specialist KBS Corporate Sales, is to float on the AIM market with a market capitalisation of £40.1m.

The company said a successful institutional share placing has raised gross proceeds of £17.8m, and it will be admitted to AIM on April 11.

The monies raised will be used to settle a deferred consideration liability that has arisen from the purchase of the business, assets and goodwill of Triskell LLP and to provide additional working capital.

On admission to the stock market it will have 42.2 million shares in issue.

Latest accounts show K3 Capital made a pre-tax profit of £2.8m on a turnover of £8.5m for the year  to the end of May 2016. At the time it employed 56 staff.

John Rigby, chief executive of K3, said: “Today’s announcement marks a very exciting new phase in K3’s development. K3 is a leading ‘all of market’ company sales specialist with a strong brand and is a highly cash-generative business with further growth potential. The group has a clear strategy to deliver a number of growth opportunities and believes that Admission will be an important step in realising these ambitions.”

The company has appointed Ian Mattioli MBE as its non-executive chairman. Mattioli co-founded the Mattioli Woods Group in 1991 and has served as its chief executive since its admission to AIM in 2005, in that time seeing an increase in its market capitalisation from £22.5m to around £200m.

Mattioli said: “I have been enormously impressed by the company’s efficient and disruptive model, driven by an ambitious and focused management team. The appetite shown from investors in the fundraising is hugely encouraging and testament to both the quality of the business that management have built to date and the potential for further growth with their highly scalable model.”

FinnCap is acting as nominated adviser and sole broker.