K3 Business Technology Group PLC Sale of Sage Business for GBP1.68m cash (2170M)
20 September 2021 - 4:00PM
UK Regulatory
TIDMKBT
RNS Number : 2170M
K3 Business Technology Group PLC
20 September 2021
20 September 2021
AIM: KBT
K3 BUSINESS TECHNOLOGY GROUP PLC
("K3" or "the Group")
Sale of Sage Business for GBP1.68m cash
K3, which provides mission--critical software and cloud
solutions, is pleased to announce the sale of the business and
assets of its non-core Sage Business to Pinnacle Computing
(Support) Ltd ("Pinnacle"), one of the UK's largest resellers of
Sage software, for GBP1.68 million in cash at completion ("the
Disposal").
Completion is expected in early October 2021, following a TUPE
consultation process in respect of the transfer to Pinnacle of Sage
Business employees, and the Disposal consideration is subject to a
downward adjustment of circa GBP0.2m in respect of any
restructuring costs that Pinnacle may undertake immediately
following completion.
In the financial year to 30 November 2020, the Sage Business
generated revenue of GBP5.2 million and a pre-tax loss of GBP1.0
million. Current recurring revenues are GBP3.1 million with gross
profit of GBP1.5 million. Net liabilities stood at approximately
GBP1.0 million at 30 May 2021.
The Disposal is in line with the Board's strategy of focusing
resources on key higher-margin products and markets, and follows
the sale of other non-core businesses, as previously announced. The
Disposal proceeds will further strengthen K3's balance sheet, and
generate a profit pre-tax of approximately GBP1.6 million, which
will be accounted for as an exceptional contribution to trading
results in the current financial year ending 30 November 2021.
Tom Crawford, Chairman of K3 Business Technology Group plc,
commented:
"The sale of our Sage Business is another step forward as we
continue to sharpen K3's focus and simplify its operations around
its higher margin core products and strategic markets. Following
this transaction and other disposals over the last two years, the
Group is more streamlined, market-focused and strategically better
positioned."
James Spencer, Managing Director of Pinnacle said,
"The Sage Business will transition very smoothly into our
operations, benefiting from our scale and depth of focus. We are
excited for both the team and customers to join Pinnacle to bolster
our operations and delivery within the Sage markets "
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014, as retained and applicable in
the UK pursuant to S3 of the European Union (Withdrawal) Act 2018
("MAR").
Enquiries:
K3 Business Technology Marco Vergani, Chief Executive T: 0161 876 4498
Group plc Officer
www.k3btg.com Robert Price, Chief Financial
Officer
finnCap Limited Julian Blunt/ James Thompson T: 020 7220 0500
(Nominated adviser and (Corporate Finance
Broker) Richard Chambers/ Sunila
De Silva
(Corporate Broking)
KTZ Communications Katie Tzouliadis/ Dan Mahoney T: 020 3178 6378
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END
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