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We should receive an RNS soon to confirm the FY results release as there's an Investor Meet presentation next week.
Investor Meet Preliminary Results Presentation: 19th Oct 2021 at 4:45pm BST.
They have delayed announcement of their results due to the increased financial complexity of audit resulting from the new acquisitions. They hope to have the results out by the end of October and that is when the dividend will be announced probably for payment in November now given the delay.
Results are due out this month apparently, they'll probably announce it then
Hi, please can someone tell me why there hasn’t been an October dividend declared as in previous years, particularly as this has been such a good year. Cannot see reference in news. Thanks
K3C cannot stay under the radar for much longer and I think the results in the next few weeks will bring them a lot more attention. Interestingly, Duff & Phelps - who runs businesses of the same type as K3C - were bought for $4.4bn by Stone Point in January this year. K3C Market is just £260m. DYOR and good luck.
"As the Covid-19 pandemic continues to push the global economy into a sustained recession, Quantuma is only the latest in a string of consultancies specialising in insolvency and corporate recovery services to attract backing. The likelihood of heightened business for the restructuring consulting segment was recently illustrated by a consortium of investors led by Stone Point Capital and Further Global, who were willing to sink an estimated $4.2 billion into the purchase of Duff & Phelps."
https://www.consultancy.uk/news/25233/quantuma-agrees-27-million-merger-with-k3-capital-group
K3C's Annual results will be released in late October rather than late September this year due to its "transformational year".
I decided to look back at what has occurred since that financial year started in June 2020 and it's true there has been a huge amount of activity and acquisitions. As per their website: "The acquisitions are in line with K3’s strategy to acquire complementary and value accretive businesses to build out its existing SME focussed service lines."
* Aug 2020: Acquisition of Quantuma (restructuring and insolvency, corporate finance, forensic accounting and investigations) for £27m, immediately earning enhancing.
* Sep 2020: Acquisition of rannd (helps businesses to secure R&D tax credits from the government in return for a percentage of the amount achieved)
* Feb 2021: Launch of K3 Hub, a new member network for intermediaries that offers a single point of contact for K3C's many subsidiary companies.
* Mar 2021: Forecast upgrade of EBITDA of no less than £12 million. Acquisition of inTax (leading tax investigations team is comprised of Chartered Tax Advisers and former HMRC Inspectors) and Aspect Plus (Insolvency Practioners).
* Apr 2021: Another Forecast upgrade: Revenue expected to be in the region of £45 million and Adjusted EBITDA* of no less than £13.25 million.
* Jun 2021: Revenues approximately £46.0 million and adjusted EBITDA* of not less than £14.25 million
Post Year-end:
* Jul 2021: Acquisition of Knight R&D (specialist research and development (R&D) tax advisory firm servicing UK SMEs)
* Jul 2021: Acquisition of Knight Corporate Finance Group (specialist M&A advisory firm within the telecoms and tech sector)
Quantuma have just been appointed as the administrators for Derby County F.C. Could be a nice little earner... they apparently billed Bolton Wanderers around £1.5m for handling their administration a couple of years ago.
I wrote to K3C this morning about results and meeting dates and received a quick response from the CFO. Seems reasonable given the circumstances and I'm still confident that it will be worth waiting for.
"Given our transformational year through acquisitions in FY21, we decided to go out with our results 4 weeks later this year – purely in order to ensure we had appropriate time with the audit and also preparing a meaningful annual report as it will be quite a deviation this year due to our numerous revenue streams.
We will make an announcement on dates in the coming week or so but are aiming for late October. I expect we will continue with our investor meets company presentations, so look forward to updating you in due course."
K3 Capital play their cards pretty close to their chest when it comes to forthcoming updates but last year's Final Results were released on 22nd September. Last year they also held an Investor presentation on 24th September.
I hope and expect that we should hear some news in the next week.
will need 400. Outrageous spread - designed to stop people cashing in when it rises.
Not long till we see if I was right. Upward momentum starting to build even in a turbulent market.
FY results should be released w/c 20th September including an Operational overview, Post period end and Current trading and outlook. All 3 should be extremely positive.
Here are my thoughts on why I believe K3C is very likely to jump 10% and be north of 400p within the next few weeks. It also has a good chance of hitting 500p by the end of 2021.
* The clues were there in the 15th June Trading update ("exceptionally strong performance, having successfully grown revenues and profits across all divisions", "significantly ahead of initial market expectations; beating multiple upgrades made to market expectations across the year" etc ) and the sp has gone sideways since then. Official confirmation in the FY results should wake up those that weren't convinced and reratings should follow.
https://polaris.brighterir.com/public/k3_capital/news/rns/story/xj3k81w
* K3C often underpromise and overdeliver, hence the multiple forecast upgrades last year.
* Continued measured international expansion: Just released today - Quantuma expands into Middle East with Dubai office launch http://www.tradearabia.com/news/IND_386721.html
* Quantuma grows headcount by 45% in 12 months: Quantuma has significantly diversified its offering in recent years to include aspects such as pensions and corporate finance advisory, the firm is still best known for its work helping clients under financial stress.
* Great financials: Investors' Chronicle highlight that K3C has excellent fundamentals and passes all 8 of their financial tests.
https://www.investorschronicle.co.uk/alpha/2021/08/13/financials-building-up-a-head-of-steam/
* Fair value of 819p on Simply Wall Street based on Discounted Cash Flow.
* K3C doing brilliantly in UK regions in the first half of this year: Midlands Financial Adviser: #1 (33 deals), North West FA: #1 (30 deals), South East FA: #2, South West FA: #4, Wales FA: =#2 (5 deals), Yorkshire & Humber FA: #1 (17 deals)
DYOR and good luck...
I'm very confident that K3C will hit 400p in the next month with FY figures being released in late Sept. Nothing but good news from them and their subsiduary Quantuma (although it's usuallh referred to as a merger).
"Due to heightened demand, corporate turnaround consultancy Quantuma has grown its team by 45% over the last year. The news coincides with its appointment of Brian Burke as a Managing Director.
While Quantuma has significantly diversified its offering in recent years to include aspects such as pensions and corporate finance advisory, the firm is still best known for its work helping clients under financial stress. Amid the unique crisis presented by the last 18 months of pandemic chaos, this meant the firm was positioned to pick up a heightened workload, during and after the lockdown.
In order to cope with rising demand, the firm committed to a hiring campaign that has seen it boost its headcount by 45%. Welcoming in a net gain of 85 new staff, the firm took its team from 188 to 273 professionals – also using acquisitions to more rapidly grow its team. Since its merger with K3 Capital Group, Quantuma has completed several lucrative deals in the last 12 months. In the first quarter of 2021..."
https://www.consultancy.uk/news/28806/quantuma-grows-headcount-by-45-in-12-months
Featured Investment Trust today (Money Section) is "PREMIER MITON UK MULTICAP INC". Their second biggest holding at 2.2% is K3 Capital. They have grown 228% since 2011 launch and 21.5% in 2021 so far, so no mugs.
This seems to be one of NT's favourites. A flurry of selling today though.
IC highlight that K3C has excellent fundamentals and passes all 8 of their financial tests. FY results in a few weeks should see a price rise.
https://www.investorschronicle.co.uk/alpha/2021/08/13/financials-building-up-a-head-of-steam/
Nick, you should be out of the red come the end of September (FY results released on Sept 22nd last year) as we already know the results are 'exceptionally strong'. In fact, K3C normally are on the conservative side which is why they upgraded their targets on a few occasions last year.
There's a favourable mention for K3C today in an update on the Diverse Income fund's performance:
"The second best contributor was K3 Capital, a multi-disciplinary group of professional services businesses advising small to medium enterprises on matters such as Mergers and Acquisitions. Although volumes were weak at this time last year, K3 Capital scaled up its operations via two complementary acquisitions at a time when corporate valuations were low. Subsequently, as SME transactions have recovered, the combined business has gone on to generate much greater cash surpluses than previously anticipated. K3 Capital enhanced the return of the Company by 1.9%."
https://quoteddata.com/2021/08/diverse-income-approach-pays/
Nick, I think you will be out of the red after the end of September. I'm really confident that the share price will pick up again after the FY results are released. My second biggest holding after Draper Esprit.
Diverse Income Trust news this morning:
"The second best contributor was K3 Capital, a multi-disciplinary group of professional services businesses advising small to medium enterprises on matters such as Mergers and Acquisitions. Although volumes were weak at this time last year, K3 Capital scaled up its operations via two complementary acquisitions at a time when corporate valuations were low. Subsequently, as SME transactions have recovered, the combined business has gone on to generate much greater cash surpluses than previously anticipated. K3 Capital enhanced the return of the Company by 1.9%."
https://quoteddata.com/2021/08/diverse-income-approach-pays/
I jumped in about 2 months ago and am sitting on a 2% loss at the moment.... that damn spread!!
I'm a Bolton lad so I'm pleased to see a local firm doing so well. This is a long term hold for me, there are huge amounts of potential with this firm. The management are excellent and I fully expect a superb set of results in September.
No, I’m watching too. Had to choose between this and KAPE. Hope I chose the right one. Will be keeping for 3 years. Been guilty of selling too early on so many others. Huge potential here
340p/350p, yes that's not helping liquidity
I'm looking at this but that's one hell of a spread at the moment like?
Anyone else watching this K3C chat? Looks like 90% of "recent" posts were from me.
Although the K3C sp has been crab-like of late, still very confident they are growing fast. FY results out towards the end of Sept. The TU said results were 'exceptionally strong^ so I'm expecting reratings. There was a strong climb after last September and the acquisitions of randd and Quantuma.
My forecast is 500p+ in 2022, if not later this year. Fair value is 831p on Simply Wall Street.