K3 Business Technology Share Discussion Threads

[tromso1] 20/6/2016 11:08

Strong looking chart. Just been tipped by Simon Thompson in the IC - Http://www.investorschronicle.co.uk/2016/06/20/comment/simon-thompson/plug-and-play-with-k-XykWyLUXUeOmFuCvOQzNFK/article.html

[markie7] 08/6/2016 12:46

on the move

[davebowler] 25/4/2016 09:22

Finncap; K3 has agreed to acquire DdD, a Danish retail software business specialising in cloud-based, software vendor-independent, convenient out-of-the-box solutions. The £8.1m acquisition is funded by a £13.5m placing at 330p, allowing headroom for working capital demands and further acquisition opportunities. The acquisition represented an alternative to K3's own development of an equivalent vendor-agnostic, cloud-based solution with an estimated development cost of €2.5m, while also bringing current EBITDA performance of €1.1m from revenue of €6.2m in the year to December 2015. Target price lifted to 465p.

[dpmcq] 20/1/2016 07:51

Positive trading statement out this morning.

[tromso1] 24/11/2015 15:54

400p soon at this rate.

[gargleblaster] 10/11/2015 00:41

Not sure whether to take some money off the table here - chart starting to look a bit parabolic now!

[fillipe] 09/11/2015 10:48

KBT - continuing to move higher....now 370p at the ask, as I type, with a one month RSI of 93.4 f

[davebowler] 05/11/2015 15:12

hTTp://www.shareprophets.com/views/16324/k3-business-technology-share-tip-of-the-year-update-where-now

[simon gordon] 03/11/2015 11:54

Tech Market View - 3/11/15: K3 wins again in SAP's home market K3 Business Technology Group has topped up on fuel for its journey towards greater IP on Microsoft Dynamics ERP solutions (see Journey continues at K3) through a big customer win for its ax|is fashion solution with German online fashion retailer K-Mail Order (KLiNGEL). The size of the deal was not disclosed but K3 describes this as a major contract win and one that “will help to underpin the results for the current financial year” and deliver ongoing licence and support revenue. It is also notable because it is K3’s second significant ax|is fashion solution retail contract in Germany (where home-grown SAP also has a fashion offering), and was won through the channel which K3 is assiduously tending. As CEO David Bolton and Group Operations Director Andrew Hodges highlighted during a recent meeting with us, the channel is important because partners can provide the resources mid market K3 would struggle to provide in a growth market. The channel represented 5% of K3’s business at the end of the most recent financial year so there is certainly a lot of headroom for growth – and something of an appetite for the retail solution that K3 has invested heavily in.

[simon gordon] 23/10/2015 19:20

Tech Market View - 23/10/15: Journey continues at K3 We caught up again with David Bolton and Andrew Hodges, respectively CEO and Group Operations Director at AIM-listed, mid-market value-added reseller, K3 Business Technology Group. Since Bolton took over as CEO early last year, he’s set out on a journey to sharpen K3’s focus on the proprietary IP they add to Microsoft’s ERP platforms, especially Dynamics AX (see Recognising the value in K3). The journey is more a marathon than a sprint – and rightly so. While, broadly speaking, half of K3’s revenues derive from its IP-enhanced solutions for the Retail industry, the rest of K3's business is firmly underpinned by its reseller/distribution activities in Manufacturing & Distribution, and its hosting services. Babies, bathwater etc, etc. K3 is fast approaching triple-digit revenues. This is typically the point not far beyond which multiple-line-of-business mid-market ‘buy-and-build’ players have to decide where to place their longer-term bets. Bolton knows the answer is in their own IP. Getting there is his challenge.

[dpmcq] 20/10/2015 13:13

Not many shares in free float so as there has been a bit of buying as of late it does tend to jump on low volume.

[markie7] 20/10/2015 09:18

On move. Wonder why?

[caradog] 23/9/2015 18:48

Part of this IC article is devoted to K3 (subscription required): hTtp://www.investorschronicle.co.uk/2015/09/23/comment/simon-thompson/small-cap-value-plays-wySOEdagfqqDiBb2We1FnI/article.html It concludes "the shares could run up to analysts' upgraded target prices. Edison Investment Research has fair value of 355p (up from 289p previously), and FinnCap raised its target price from 330p to 380p."

[caradog] 17/9/2015 18:01

Nope, not a mention in IC. Maybe next week.

[caradog] 16/9/2015 16:26

According to this, Finncap have raised target to 380: hTtp://www.directorstalkinterviews.com/k3-business-technology-group-plc-36-4-potential-upside-indicated-by-finncap/412678319 and Edison have increased their target to 355: htTp://www.edisoninvestmentresearch.com/?ACT=18&ID=14944

[caradog] 15/9/2015 13:17

I see these as a good set of results from a solid company. Oddly enough, although K3 have been recommended as a buy by Simon Thompson of the IC a year ago with a recommendation in July to run profits up to a possible 330, there is no mention of the results in today's daily market overview article. Last year we had an article specifically on K3 within a couple of days and I think we shall see a repeat this year with every prospect of a repeated buy rec and possibly raised target in time for the paper edition on Friday. We shall see.

[simon gordon] 15/9/2015 08:38

Tech Market View - 15/9/15: K3 value showing through Earlier this year I posed the question whether management at AIM-listed, mid-market value-added reseller K3 Business Technology Group could rise to the challenge to make the business more than the sum of its very many parts (see Recognising the value in K3). Today’s FY results affirm they are up for the challenge! As previewed last month (see K3 - Full year “in line”), K3 did the necessaries, turning in revenues of £83.4m for the year to 30th June, 16% higher yoy. The acquisitions of Willow Starcom and RTL contributed around £1m so organic growth was a very sparkling 15%. Gross margins eased back from 54.1% to 51.5% but a tighter rein on opex saw operating profit jump 86% to £4.8m lifting margins from 3.6% to 5.8%. Pre-tax profit more than doubled to £3.88m. Super result. And good news on the channel front (currently 5% of revenues) with a major retail win on SAP’s home turf via a global SI. Channel revenues are set to grow very much faster. And there was also good news from IKEA, K3’s largest client (but under 10% of total revenues) which has extended its contract to 2020. K3 is not yet at the ‘mission accomplished’ stage – there’s still much work to do. But CEO David Bolton understands the tasks ahead and takes a realistic view on how these should be accomplished. I will be meeting the top team again next month and will explain more then.

[sharesoc] 02/6/2015 10:56

We are holding one of our popular Investor Masterclasses in Manchester so local investors and shareholders in KBT may be interested in attending as KBT is based nearby our venue... hTTp://www.sharesoc.org/manchester-masterclass.html

[simon gordon] 19/3/2015 11:00

Edison out with a note - 18/3/15: Http://www.edisoninvestmentresearch.com/research/report/k3-business-technology11 We have revised our forecasts to take account of the company’s new reporting format. Our revenues and normalised operating profit forecasts are substantially unchanged. In FY15, we forecast revenue growth of 17.5% for Retail and 6.2% for Manufacturing & Distribution and a normalised operating margin of 7.8% and 14.6% respectively. Due to an increase in our net debt forecasts, we have increased our net interest expense estimates for FY15 and FY16, which results in a cut to normalised EPS of 5.4% in FY15 and 3.4% in FY16.

[davebowler] 17/3/2015 13:53

Finncap; KBT – CORP – TP: 330.0p – Market Cap: £72.3m Interims to December 2014 show delivery in line with the January trading update, accompanied by improvements in disclosure which serve well to highlight the strengths of the company and illustrate the company’s own product focus. With 11% growth in recurring revenue (48% of group revenue) and 21% group revenue growth, revenue statistics are all strong. 22% of revenue and 27% of gross profit derives from K3’s own IP, which delivers functionally rich sector specific integration, making third-party ERP systems more relevant to sector specific environments. As evidence of success of that IP, K3 is now Microsoft’s global preferred partner for the fashion retail sector. Trading at only 11.5x June 2015 P/E, there remains plenty of upside opportunity – we upgrade our target price to 330p (300p).

[simon gordon] 17/3/2015 11:14

Tech Market View - 17/3/15: Skills shortages squeeze K3 First, let’s applaud the top team at AIM-listed mid-market value-added reseller K3 Business Technology Group for disclosure. The new format for their results let’s you see more of what’s going on under the covers so you can get a better handle on how the key parts of the business are performing. It’s not perfect but it’s better. This is particularly important as K3 progresses on its journey to increase the proportion of its own IP in the mix. As presaged in its trading statement earlier this year (see K3 provides further encouragement) there were encouraging signs in H1 (to 31st Dec. ’14). Revenues grew by 21% to £41.7m, with operating profit up by nearly 80% to £2.3m, lifting operating margins by nearly two points to 5.6%. Still room for improvement there, of course. Pre-tax profits more than doubled to £1.8m. The profit boost was the effect of lower restructuring and amortisation costs; gross margins for its two main business lines (Retail, and Manufacturing/Distribution) actually declined due to higher services resource costs. Indeed K3 chairman Lars-Olof Norell alluded to a shortage of Microsoft Dynamics AX skills in the UK, upon which platform K3’s own IP is based. Although K3 presents itself as a ‘business of two halves’ along industry vertical lines, there are a host of sub-businesses under the covers. Besides its own IP there’s also product resale for Sage (K3 is one of the largest Sage resellers in the UK), Syspro and Microsoft Dynamics NAV, plus application hosting and ‘cloud’ delivery, and hardware resale. Many hands are needed on many levers. We’ll be meeting K3 CEO David Bolton and CFO Brian Davis soon, after which more will undoubtedly follow. ===== I sold out this morning because of vagueness due to there being no outlook statement for the full year. Coupled with talk of "resource related challenges" it smells like a downgrade. Will look again at the Prelims. Good fortune.

[davidosh] 16/3/2015 12:05

Would anyone like to come to a results presentation with the directors tomorrow lunchtime in the City?