27th Jul 2020 12:49
(Alliance News) - K3 Business Technology Group PLC on Monday said its annual results were hurt by "weak trading conditions" with revenue falling and the software, cloud solution and managed services company reporting a swing to loss.
In the year ended November 30, revenue was down 5.9% to GBP78.4 million from GBP83.3 million.
It swung to a pretax loss of GBP14.5 million from a nominal GBP17,000 profit in the year prior.
Besides the revenue fall, driving the big swing to loss was a 25% rise in administrative costs to GBP52.8 million, together with a GBP12.2 million impairment of Dynamics UK, versus no such charge the year before. The loss-making reseller subsidiary was put into administration back in April.
K3 also decided against an annual divided, after making a 1.54 pence payout in the year prior.
"Results were impacted by weak trading conditions and expected high-margin licence orders not coming through," K3 noted.
It was a tough year for the firm but the period was spared from the bite of the Covid-19 pandemic.
"The group has managed the impact of coronavirus on employees, customers and the financial resources. Employees transitioned easily to remote working, and offices were closed according to local conditions and advice in each country. The group raised additional financing in April 2020 to ensure adequate liquidity exists for year ending 30 November, 2020, allowing for reduced revenue and potential higher bad debts," K3 said.
Shares in the company were 3.8% higher at 69.55p each in London on Monday afternoon. The stock has more than halved in the year to date.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
K3 Business Technology Group