As K3 continues to hone its focus on higher margin core businesses, it has announced the sale of its managed services unit, Starcom Technologies, to Node4 Ltd for £14.7 million in cash (including £0.5m of cash on the balance sheet). The disposal will give K3 a profit in excess of £10 million in the Group’s current financial year (FY 2021E), and further accelerates the strengthening of its balance sheet. We estimate that Group revenues will be more than 70% sourced from outside the UK following this sale of K3’s UK managed services business. The disposal will provide management with the opportunity to concentrate its focus on the K3|imagine platform and Own IP sales together with Global Accounts – both of which proved to be resilient during K3’s financial Q2 2020 which was affected by COVID-19.
26 Feb 2021
Disposal underlines focus on core growth
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Disposal underlines focus on core growth
K3 Business Technology Group PLC (KBT:LON) | 104 0 0.0% | Mkt Cap: 46.3m
- Published:
26 Feb 2021 -
Author:
Gareth Evans | Ian Poulter -
Pages:
3
As K3 continues to hone its focus on higher margin core businesses, it has announced the sale of its managed services unit, Starcom Technologies, to Node4 Ltd for £14.7 million in cash (including £0.5m of cash on the balance sheet). The disposal will give K3 a profit in excess of £10 million in the Group’s current financial year (FY 2021E), and further accelerates the strengthening of its balance sheet. We estimate that Group revenues will be more than 70% sourced from outside the UK following this sale of K3’s UK managed services business. The disposal will provide management with the opportunity to concentrate its focus on the K3|imagine platform and Own IP sales together with Global Accounts – both of which proved to be resilient during K3’s financial Q2 2020 which was affected by COVID-19.