Tag: K3

K3 bottom line improves thanks to burning Sage

Posted on April 6, 2022 by - News

K3’s losses have improved after the outfit off-loaded two non-core units, including its Sage business for £1.68 million.

The software cloud solutions provider for the fashion industry has posted its final financial results for the 12 months to 30 November 2021.

It shows revenue was up three percent to £45.3 million while losses before tax from continuing operations decreased to -£7.8 million, compared with -£20.8 million in 2020.

This comes after Pinnacle Computing acquired K3s former Sage business for £1.68 million in September last year. K3 sold off its Starcom MSP arm to Node4 last February for £13.3 million.

Pinnacle Computing buys £1.68 million worth of Sage

Posted on September 27, 2021 by - News

Pinnacle Computing has picked up K3’s Sage business for £1.68 million.

The deal should complete next month. In the fiscal year to 30 November 2020, the Sage business generated revenue of £5.2 million and a pre-tax loss of £1 million. Current recurring revenue is £3.1 million, with gross profit of £1.5 million. Net liabilities stood at approximately £1 million on 30 May 2021.

In April 2020, K3 placed its loss-making UK Dynamics business into administration, leaving the group focused on profitable core units. The channel outfit flogged Starcom Technologies in February 2021, for £14.7 million to Node4.

K3 expects the sale to strengthen its balance sheet and generate pre-tax profit of approximately £1.6 million, which will be accounted for as an exceptional contribution to trading results in the current financial year, ending 30 November 2021.

K3 puts Microsoft Dynamics reseller arm into administration

Posted on April 8, 2020 by - News

K3 is to put its loss-making Microsoft Dynamics reseller,  K3 Business Technologies into administration.

K3 said the reseller wing, which sells Microsoft ERP and CRM wares, turned over £21 million in its fiscal ’19, accounts for which have been postponed as mentioned above. In that year it generated an operating loss of £3 million.

The parent firm added: “Given the current uncertainties created by the coronavirus crisis, this UK subsidiary is expected to generate further significant negative earnings before income tax, depreciation and amortisation and cash outflows in the year to 30 November”.

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K3 considers closure of ‘under-performing’ third-party solutions arm

Posted on March 25, 2020 by - News

Microsoft and Sage partner   K3 is “actively reviewing” the possibility of shuttering one of its under performing third-party solutions units.

It issued the warning as it announced it would be revealing its full-year results for its year ending 30 November 2019 at a later date, following advice from the FCA and AIM.

K3 is declining to forecast business operations for the current financial year, due to the impact of COVID-19. It intends to provide a further trading update in May.

K3 warns of sliding profits

Posted on October 23, 2019 by - News

K3 has warned that its earnings will be “significantly” below market expectations after seeing major client deals fall through.

In a trading update, K3 said that its second half had “started confidently”, but a major new contract then failed to materialise and a “large customer” entered administration. Clients are buying software at a slower pace than anticipated.