K3 ends sale talks
BUSINESS software provider K3 Business Technology Group has scrapped sale plans.
The Salford firm had received a number of offers, believed to be from private equity investors.
But in a statement the AIM-listed firm said: “Following extensive discussions the board does not believe the proposals received are at a level that would be acceptable to shareholders and are therefore not recommendable by the board.
“The board has therefore decided to terminate the formal sale process with immediate effect.”
The announcement came as the group unveiled full-year sales of £68m, up 28% from £52.8m. However £11.8m of that growth came from acquisitions. Pre-tax profits were up 22% to £6m.
Chairman Tom Milne, Chairman, said: “In tough trading conditions, K3 delivered good results for the year to 30 June 2012.
“One of the strengths of the business is that a considerable portion of group income is recurring, with existing customers accounting for recurring revenues of £33.74m, up 40% on last year. Revenues also benefited from the five significant acquisitions completed in the year.”
He added: “With the end of the formal sale process, we are now re-focusing on our strategy for growth. We have a number of medium term growth opportunities to leverage our large customer base and build on our key customer and supplier relationships, especially in Managed Services and our International operations.”
