12th Jun 2018 07:00
12 June 2018
K3 CAPITAL GROUP PLC
("K3", the "Company" or the "Group")
Trading update and notice of results
K3 Capital Group plc, a leading business and company sales specialist in the UK, today announces a trading update following its financial year end on 31 May 2018 (the "Period").
The Company expects to report trading comfortably in line with market expectations for the Period for both revenue and profit. The Group has achieved significant revenue and profit growth across all three of its operating divisions compared to the prior financial year. The growth in revenue was underpinned by the successful scaling of the Group's delivery platform, resulting in an improvement in the overall profit margin.
The Company continues to successfully deliver its core strategy of dealing with more sizeable and profitable clients and is delighted to report that average fee levels continue to increase across both non-contingent fees and transaction fees.
K3 enters its new financial year with a record number of opportunities in its pipeline and expects to see continued growth against its core KPIs, driven by ongoing investment in high quality people.
The Company is encouraged by the M&A activity in the private markets with the Group experiencing an increased number of sellers combined with record numbers of buyers registered.
The Company is also pleased to update that its wholly owned subsidiary KBS Capital Markets Limited has received regulatory approval from the Financial Conduct Authority. This approval enables the Group to broaden its services by providing deal execution for clients wishing to sell down minority stakes in addition to its current offering.
Notice of results
The Company looks forward to updating shareholders on publication of its audited results for the year ended 31 May 2018 on 11 September 2018.
John Rigby, CEO, commented:
"I am delighted with the progress that has been made in what was another record year for K3, and our first full year as a public company. The Group's three brands continue to gain recognition and market share within their respective markets and we are pleased to top the Thomson Reuters Small Cap M&A League Table having completed some 35% more qualifying transactions than any other adviser in the UK.
"We continue to deliver our stated strategy of growing the average deal size across the Company and are confident that we will continue to increase the average transaction fees in the year ahead across all three operating divisions.
"We believe the FCA authorisation of KBS Capital Markets is an exciting and innovative development for our business that enables the Group to unlock an additional revenue stream within its core market.
"I am encouraged by the Group's record pipeline and new revenue opportunity and we remain optimistic that we will continue to deliver healthy growth against our core KPIs over the coming financial year and beyond."
-ENDS-
For further information please contact:
K3 Capital Group plc | Tel: c/o Newgate 020 7680 6550 |
John Rigby, Chief Executive Officer | www.k3capitalgroupplc.com |
Andrew Melbourne, Chief Financial Officer | |
finnCap Ltd (Nominated Adviser and Sole Broker) | Tel: 020 7220 0500 |
Jonny Franklin-Adams, Emily Watts, Anthony Adams (Corporate Finance) | |
Tim Redfern, Richard Chambers (Corporate Broking) | |
Newgate Communications Ltd (Financial PR) | Tel: 020 7680 6550 |
Alistair Kellie, Zoë Sibree, James Ash |
About K3 Capital
K3 Capital Group plc is a leading business sales and brokerage firm headquartered in Bolton with operations throughout the UK. It acts for vendors of businesses with values from c. £50,000 to over £100 million through its three trading subsidiaries Knightsbridge, KBS Corporate, and KBS Corporate Finance. K3, through its trading subsidiaries, has received a number of adviser awards, most recently retaining its number 1 position in the FY 2017 Thomson Reuters Small-Cap Financial Advisory Review seeing it complete 35% more transaction than any other advisor in the UK.
K3 Capital operates a disruptive business model with a direct marketing approach to client acquisition, using incentivised and experienced salespeople rather than advisory teams, while its highly visible online presence and proprietary online business valuation portal generates further leads. This innovative model, combined with a continuing strategy towards targeting higher value clients, are key drivers for growth and profitability.
The Group also offers all clients fully contingent and inclusive legal fees through its partner relationship with a number of legal service providers.
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.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Related Shares:
K3C.L