Platform for growth in place
K3’s results for the year to the end of November 2020 reflect a period in which its retail solution sales were impacted by COVID-19. They also reflect significant honing of the focus of the business with two non own IP divisions – the UK Dynamics business placed in administration in 2020 and Starcom, sold in February 2021 – treated as discontinued businesses in the numbers. The continuing businesses reported revenues down 2.5% with the recurring/predictable element of that increasing during the year. With the Starcom disposal strengthening the Balance Sheet, the new CEO, Marco Vergani, starts his tenure with the opportunity to apply his strong track record of driving sales growth to those continuing businesses. We believe that K3 now has a good platform on which to move forward and deliver further improvement in SaaS revenues, with investment and its growth strategy focused on its own IP products and its Global Accounts businesses.