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K3 Capital Group PLC (K3C)

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Friday 05 April, 2019

K3 Capital Group PLC

Trading Update

RNS Number : 2170V
K3 Capital Group PLC
05 April 2019
 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

5 April 2019

 

K3 CAPITAL GROUP PLC

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

 

Trading Update

 

K3 Capital Group plc, a leading business and company sales specialist in the UK, today provides the following update on trading for the financial year ending 31 May 2019 (the "Period").

 

The Company confirms that a number of the significant transactions within its KBS Corporate Finance Division mentioned within the trading update released on 11 December 2018 continue to progress through the due diligence processes and are in advanced stages of commercial negotiation. Due to the increasingly difficult backdrop of UK's economic and political environment in the run up to Brexit, these transactions continue to experience challenges and take longer to complete than anticipated and consequently may not close within the current financial year. As a result, the Board expects to report EBITDA between £4.5m and £5.0m.

 

The Company's KBS Corporate and Knightsbridge brands have continued to perform well in the second half of the Period and the Board is encouraged to see the ongoing trend of these divisions contributing an increasingly greater proportion of the Group's revenue and profit than in previous years. This growth within the 'volume driven' brands is combined with continuing improvement in the main KPIs across the Group with record ever numbers of sellers coming to market and record buyer numbers being recorded. This is leading to year on year growth in the number of completed sales.

 

K3 will enter the new financial year with a strong pipeline across the Group and consequently the Board remains confident of the Group's future prospects and makes no change to its outlook for FY20.

 

Commenting on the update, Chief Executive of K3 Capital Group plc, John Rigby, said:

 

"From an operational perspective, the Group has continued to perform well against a backdrop of significant uncertainty in the UK economy. Four out of our five income streams across the Group will see strong growth in the period and it is simply issues which are outside of our control, with a small number of high value transactions slipping to the right, which will result in what we see as a temporary dip in profitability.

 

We continue to build a business which is more robust with a decreasing reliance on the larger transactions. This year has shown us that despite unprecedented uncertainty within the UK economy, our core business has grown well and we will end FY19 with a stronger core business which is better placed to deliver on its growth strategy."

 

 

 

 

 

 

-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, Anthony Adams (Corporate Finance)


Tim Redfern, Richard Chambers (Corporate Broking)




Newgate Communications Ltd (Financial PR)

Tel: 020 7680 6550

Alistair Kellie, Bob Huxford

[email protected]

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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