Transformational year for software group K3 Business Technology
Salford software group K3 Business Technology said it has completed a “transformational year” in announcing its results for the 12 months to November 30, 2021.
The group saw revenues rise by three per cent to £45.3m, and pre-tax losses fall from a £20.85m deficit in 2020 to a pre-tax loss of £7.82m. A net debt of £1.9m the previous year has been transformed into cash reserves of £9m in 2021.
It said a new growth strategy has been established following the appointment of new CEO Marco Vergani in March 2021. K3 said it has identified very good growth opportunities across all core activities, but with a strong focus on fashion, apparel and related large retail brands.
Two non-core businesses, Starcom Managed Services unit and Sage business, were disposed of to help strengthen the balance sheet and support the business refocusing.
K3 said its global accounts continued to expand and the roll-out of stores for Inter IKEA Concept franchisees in the Far East and in Central and South America is ongoing
In January this year, post-reporting period, K3 bought French company ViJi Sas, in a deal worth approximately £875,000.
Chairman, Tom Crawford, said: “This has been a transformational year for K3. Under our new CEO, Marco Vergani, we have established a clear and focused growth strategy, and made substantial organisational changes, including two disposals, which support our growth objectives.
“We have also simplified the way we present the business by creating two clear divisions of K3 Products and Third Party Solutions. The group is now financially stronger and better placed to take advantage of the significant market opportunities we have identified across our core areas of activity.”
He added: “Our post year end acquisition of sustainability-focused software developer ViJi is a signal of our ambitions to extend our existing solutions to address the exciting new opportunities we have identified.
“The board is very pleased with the progress that has been has made, and the new financial year has started in line with our expectations.”
Marco Vergani said: “We have taken major steps forward in repositioning the business for long term, sustainable profitable growth and cash generation.
“We believe that we are establishing an organisation that is more commercially driven and customer focused, as well as more agile. Our emphasis is on ensuring that the business is ‘market-product-price-fit’ driven and provides an excellent customer service.
“We have clearly defined growth plans for the future and have identified very good growth opportunities across our fashion and apparel activities and in our SYSPRO and Global Accounts operations.”
