K3 narrows losses after selling off Sage business

The business has posted its 2021 financial results

K3 narrowed its losses in the last financial year after selling off two non-core units, including its Sage business for £1.68m.

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 per cent to £45.3m while losses before tax from continuing operations decreased to -£7.8m, compared with -£20.8m in 2020.

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

K3 said last year that the sale proceeds will "further strengthen" the company's balance sheet.

In a statement published along with the businesses' financial results for 2021, Tom Crawford, chairman of K3 Business Technology Group said: "This has been a transformational year for K3. Under our new CEO, Marco Vergani, we have established a clear and focused growth strategy, and made substantial organisational changes, including two disposals, which support our growth objectives.

"We have also simplified the way we present the business by creating two clear divisions of K3 Products and Third Party Solutions.

"The Group is now financially stronger and better placed to take advantage of the significant market opportunities we have identified across our core areas of activity."

He added the post year end acquisition of sustainability-focused software developer ViJi "is a signal of our ambitions to extend our existing solutions to address the exciting new opportunities we have identified."

Crawford said: "The board is very pleased with the progress that has been has made, and the new financial year has started in line with our expectations."