Software and services firm K3 reports descent in profits
Acquisition-hungry seller puts self on block
Mid-range ERP house K3 saw profits dip in the six months to December as it hoovered up a host of smaller rivals.
The software and services seller, which is in currently touting itself around the market, turned in revenues of £33.4m for the first half of its financial year, a 35.2 per cent jump on the previous year. Pre-tax profits came in at £4m, down 6.1 per cent on the previous year.
K3 decided to emphasise adjusted profit from operations of £6.91m, up 11 per cent on the year, and adjusted pre-tax profits of £6.32m, a 7 per cent rise.
The firm sucked up no less than five other outfits between July and December last year, none of which cost it more than £2.23m up front, with the total bill coming in at £6.36m.
Chairman Tom Milne said today that he was pleased with the firm's performance, and that the mini buyout splurge has added "further customers, additional intellectual property and increased the reach of the business."
K3 has put itself on the block after the board rejected a takeover from its largest shareholder. Milne said it had commenced talks with a number of potential suitors, and would make announcements in due course. In the meantime, he said, "we expect K3 to make good progress over the remainder of the financial year and beyond". ®