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K3 Business Technology Group (KBT)

Business description

K3 provides Microsoft Dynamics-based, Sage and SYSPRO ERP solutions and managed services to SMEs in the retail, distribution and manufacturing sectors.

Share price chart

Share chart
Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2010A 59.8 10.3 7.6 23.4 7.1 5.6
2011A 52.8 10.6 8.7 27.0 6.2 7.6
2012E N/A N/A N/A N/A N/A N/A
2013E N/A N/A N/A N/A N/A N/A

Last updated on 08/12/2011

Latest research

Expanding UK Retail

Flash note | Technology | 20/12/2011

Manufacturing addition

Flash note | Technology | 15/12/2011

Unisoft POS acquisition

Flash note | Technology | 08/12/2011

Recurring revenue growth

Review | Technology | 20/09/2011

Sage addition

Update | Technology | 26/07/2011

FY11 trading update

Update | Technology | 05/07/2011

UK retail acquisition

Update | Technology | 29/03/2011

Profitability maintained

Outlook | Technology | 09/03/2011

SYSPRO hosting deal

Flash note | Technology | 14/02/2011

Growth strategy on track

Update | Technology | 25/01/2011

Sage 200 acquisition

Update | Technology | 23/12/2010

Managed services buy

Update | Technology | 18/11/2010

Investment summary

Continuing its series of strategic acquisitions, K3 has acquired Retail Systems Group Ltd (RSG) for up to £1.48m. RSG supplies Microsoft Dynamics RMS software to the retail market in the UK and Ireland. In the year to 30 June 2011, RSG generated revenues of £2.0m and EBITA of £0.3m (15% margin). The valuation (up to 0.7x trailing sales and 4.9x trailing EBITA) is in line with previous acquisitions.

Last updated on 20/12/2011

Industry outlook

K3 is Microsoft's biggest Dynamics partner in the UK, supplying the retail, distribution and manufacturing sectors. The provision of solutions with a growing proportion of K3's own IP differentiates it from other IT service companies and resellers. While the retail and manufacturing markets are expected to be tough in 2011, K3's Managed Services business is well positioned to benefit from the growing demand for cloud computing.

Last updated on 09/12/2011

Key management

Thomas Milne, Chairman
Andy Makeham, CEO
David Bolton, FD

Company address

Baltimore House
50 Kansas Avenue
Manchester
M50 2GL
United Kingdom
+44 (0) 161 876 4498
View website



Sectors covered by Edison's research teams