K3 shows growth as buyers line up
REVENUES at Salford-based software firm K3 Business Technology increased by 35% in the six months to December 31, 2011 to £33.4m (2010: £24.7m).
The figure includes a £3.7m contribution from businesses bought in late 2010 and the first half of 2011, and pre-tax profits actually dropped by 5% to £4m (£4.2m).
The company, which last week formally put itself up for sale after rebuffing an earlier approach from major shareholder P J Claeson, said that revenues had increased across all four of its divisions – Microsoft UK, SYSPRO and Sage, International and Managed Services – and that new orders had increased by 72% to £8.6m.
The firm has said that it has already “received a number of indicative proposals at levels materially higher than the current share price”.
Chairman Tom Milne said the company would “make further announcements in due course” about the sale process.
With the growth opportunities available and our strong financial position and supportive bankers, we expect K3 to make good progress over the remainder of the financial year and beyond.”
By the year end, the firm’s net debt had reached £13.4m – higher than the £11.5m in 2010, but lower than the position at June 30, 2011 of £15.5m.
