Steady as you go at Bolton brokers
Bolton based business sales and brokerage firm K3 Capital Group saw steady trading in the last six months.
The AIM listed firm announced its interim results this morning.
Group revenue was £7.2m – a fall of £300,000 on the previous six months.
Adjusted EBITDA was £3.1m, which was also slightly down on the previous six months.
There was continued organic growth across Knightsbridge and KBS Corporate with revenues up 19% and 17% respectively.
Due to the timing of a number of significant transactions in KBS Corporate Finance, group revenue and adjusted EBITDA were marginally below the comparative period.
Chief Executive of K3 Capital John Rigby, said: “As a Board, we are pleased to report an encouraging trading period for the first six months of FY19.
“The period has seen strong organic growth in Knightsbridge and KBS Corporate, and continuing improvements across major KPIs throughout the group, resulting in a revenue increase in the Knightsbridge brand, up 19% to £1m, and KBS Corporate, up 17% to £4.6m.”
“Due to the expected timing of several transactions in KBS Corporate Finance moving from H1 into H2, and given our accounting policy of only recognising transaction fee income on completion, revenue in the corporate finance brand, for the reporting period, is £1.7m, down from £2.8m in H1 2018.
“As a result of these delays, coupled with the ongoing delivery of the organic growth and ‘bigger and better’ strategies – the KBS Corporate Finance brand ends H1 2019 with its highest ever value and volume of WIP pipeline.
“December once again saw a record festive period in non-contingent fee income. With the recent capacity increases in the sales divisions of the Group, we would expect this trend to continue throughout the remainder of FY19 and beyond.
“Our technology driven approach to marketing has ensured that we continue to see increased numbers of buyers, spanning private equity, trade and plc acquirers from the UK, European and Global marketplace.
“We have secured a 37% rise in the volume of buyers attracted to the group, as well as the average Transaction Fee across the two brands increasing by 17% in Knightsbridge and 8% in KBS Corporate respectively.
“The improving performance across KPIs, ongoing investment in people and technology, coupled with the robust deal pipelines that exist across all three trading brands, lead us to a confident outlook for both the full year FY2019 and beyond.”
K3 Capital Group acts for vendors of businesses from £50,000 to £200 million through its three trading subsidiaries Knightsbridge, KBS Corporate, and KBS Corporate Finance.