K3 Business Technology Group PLC - Enterprise software company - Sells Sage Business to Pinnacle Computing (Support) Ltd for a GBP1.7 million cash consideration. Adds that the disposal consideration is subject to a GBP200,000 adjustment downwards to account for any restructuring costs Pinnacle may undertake immediately following completion. Notes that Sage Business reported a pretax loss of GBP1.0 million on revenue of GBP5.2 million in the financial year ended November 30, 2020.
Anticipates completion of the sale by early October. Expects the proceeds of the sale to add GBP1.6 million to its pretax profit in its current financial year ending November 30.
Chair Tom Crawford says: "The sale of our Sage Business is another step forward as we continue to sharpen K3's focus and simplify its operations around its higher margin core products and strategic markets. Following this transaction and other disposals over the last two years, the group is more streamlined, market-focused and strategically better positioned."
Current stock price: 178.00 pence, up 0.9% on Monday afternoon
Year-to-date change: up 62%
By Scarlett Butler; scarlettbutler@alliancenews.com
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K3 Business Technology Group (KBT)