Trading Update

K3 CAPITAL GROUP PLC

("K3", the "Company" and including its subsidiaries the "Group")

Trading Update

K3 Capital Group plc, a multi-disciplinary professional services firm providing advisory services to SMEs, is pleased to provide a trading update for the six-month period ended 30 November 2021.

The Group delivered a strong performance during the first six months of FY22 and is expecting to report revenues in excess of £30 million (H1FY21: £17.6m*) delivering adjusted EBITDA** of c.£9million (H1FY21: £5.6m). All business divisions have continued to perform well, driven by both organic growth in existing brands as well as the contribution of the recent acquisitions of Knight Corporate Finance Group Limited and Knight R&D Limited which completed in July 2021.

Performance is in line with management's expectations and represents c.50% of market consensus revenue and adjusted EBITDA** for the year ended 31 May 2022.

The Group maintains strong pipelines across its brands for the second half of the year and management is confident in meeting the market expectations for the full year.

*H1FY21 revenue will be restated as £17.6 million at the H1FY22 interims based on the new accounting policies adopted as announced on 15 October 2021.

**Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, stated before acquisition related costs and share based payment charges.

John Rigby, K3's CEO, commented,

"The first six months of the year has been incredibly positive, with trading in line with market expectations as we continue to deliver our growth strategy across the Group. The results are underpinned by diversified revenue streams and continue to illustrate the benefits of our strategy of building a broader professional services group with greater visibility of future revenues.

We have been encouraged by the KPI performance and strong pipelines of each of the Group's divisions during the financial year so far. The Board continues to look for complementary acquisitions within the professional services space and is confident in the prospects of the Group for the remainder of FY22 and beyond."

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About K3 Capital

K3 Capital Group plc is a multi-disciplinary professional services firm providing advisory services to SMEs, with operations throughout the UK and overseas.

Services provided by K3 M&A Advisory Group:

· Mergers and Acquisitions (M&A) - Company sales, brokerage and corporate finance services to SME's looking to achieve full or partial exit, advising on sales to private, trade, plc, private equity or overseas acquirors. Strategic advisory and valuations, financial due diligence and debt advisory.

Services provided by K3 Tax Advisory Group:

· Research & Development tax credit advisory: advising clients on Research and Development Tax Credit (RDTC) claims.

· Intax: Tax investigations relating to tax fraud / tax avoidance / disclosures and code of practice 9 (COP9) related work.

 Services provided by K3 Restructuring Advisory Group:

· Restructuring advisory: formal insolvency appointments, informal restructuring advisory, personal insolvency and pension restructuring and insolvency advice.

· Financial advisory: comprehensive analysis of business performance through business toolkit, independent reviews, stakeholder management and turnaround and interim support.

· Creditor Services: creditor representation and liquidations.

· Forensic accounting and expert witness: forensic investigations, intelligence and forensic accounting.

The Group's medium-term strategy is to build a wider group of growing and complementary professional services businesses to provide SMEs with high quality advice across specialist disciplines.

K3 Capital Group trades on the London Stock Exchange (AIM: K3C.L), having listed on 11 April 2017. Please visit www.k3capitalgroupplc.com for more information.