K3 takes down 'for sale' signs

K3 Group has officially taken itself off the market after ending a sale process that started back in March after the board felt no good offers had been made for the firm

Having taken itself off the market and put the for sale signs back in the cupboard business intelligence specialist K3 Business Technology Group has set out its plans for an independent future.

The firm had been for sale since March and even as recently as July an update indicated that discussions with possible suitors were ongoing.

But none of the offers recieved cut the mustard according to statement issued this morning: "Following extensive discussions the Board does not believe the proposals received are at a level that would be acceptable to shareholders and are therefore not recommendable by the Board."

As a result the sale process has been terminated and the focus is now on getting back to developing the main business.

K3 delivered an increase in revenues to £67.96m from £52.80m a year earlier in the 12 months ended 30 June and saw pre-tax profits rise to £6.04m from £4.91m.

Tom Milne, chairman of the K3 Group, said that it had delivered good results despite the ongoing tough trading conditions, helped by the fact a lot of its revenue was recurring. But it was also helped to grow revenues as a result of the five acquisitions it had made in its fiscal year.

"With the end of the formal sale process, we are now re-focusing on our strategy for growth. We have a number of medium term growth opportunities to leverage our large customer base and build on our key customer and supplier relationships, especially in Managed Services and our International operations," he said.

"We see the new financial year as a year of investment, with two areas of specific focus being our Microsoft Dynamics AX product and Managed Services.  We anticipate that the benefits of our investment programme should come through during the course of 2013," he added.

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