K3C.L Regulatory News (K3C)

K3 CAPITAL GROUP PLC

("K3", the "Company" and including its subsidiaries the "Group")

Pre- Close Trading Update

K3 Capital Group plc, a multi-disciplinary professional services firm providing advisory services to SMEs, is pleased to provide a pre-close trading update for the financial year ended 31 May 2021 ("FY21 Financial Year").

The Group delivered an exceptionally strong performance, having successfully grown revenues and profits across all divisions. As a result, the Group expects to report revenues for the full year to 31 May 2021 of approximately £46.0 million and adjusted EBITDA* of not less than £14.25 million. These results exceed the full year guidance provided by the Company in the trading updates released on 14 April 2021 and 4 March 2021, with adjusted EBITDA* significantly ahead of current consensus market expectations**. The M&A division had a strong year with material organic growth delivering revenue and adjusted EBITDA* significantly ahead of expectations and delivering a high profit margin contribution.

Alongside the transformational acquisitions of Quantuma and randd and in line with the Group's stated strategy, three complementary bolt-on acquisitions were also completed during the period and have all contributed to growth and provided further diversification of revenues. These new revenue lines together with the new tax advisory and debt advisory offerings and the newly established Market Mapping joint venture all provide additional layers of diversification and will financially contribute to the Group in FY22 and beyond.

The Group's balance sheet is strong with an unaudited cash balance of approximately £14 million as at 31 May 2021. In addition, shortly before the end of the financial year, the Group announced that it had agreed maiden debt facilities of £15 million, which remain undrawn and give the Company greater flexibility in funding future bolt-on acquisitions.

* Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, stated before acquisition related costs and share based payment charges.

** Current consensus analyst forecasts for revenue of £45.02 million and adjusted EBITDA of £13.27 million.

John Rigby, K3's CEO, commented,

"In a year of challenging conditions, particularly in the context of the suppressed insolvency market, we are extremely proud that we have delivered results for the FY21 Financial Year that are significantly ahead of initial market expectations; beating multiple upgrades made to market expectations across the year. The FY21 Financial Year has been a transformational and very important year for the Group, notably being our first period of reporting post the acquisitions of Quantuma and randd. It represents a year of significant growth in the scale, diversity and quality or our business which sees a significant increase across revenue and profits as well as progression in our strategy to build a wider group of growing and complementary professional services businesses.

All of our business divisions have performed well and integration projects have proceeded in line with expectations. We believe that these results are testament to the Group's ability to identify, acquire and integrate high quality and accretive acquisitions and we are proud to have built a diverse group of businesses that are positioned to deliver robust performances across all economic cycles.

As ever there remains a degree of uncertainty in the markets in which we operate, however we begin the 2022 financial year with great confidence. Along with investing in the Group to expand the range and depth of our service lines, we have also invested in our internal resource to provide us with the flexibility and capacity to service an increase in demand. Additionally, we continue to identify further opportunities to expand the range and depth of our service lines. In summary, the board is delighted with the performance of the Group and remains confident of continuing its strategy and making further progress in the upcoming financial year."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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 About K3 Capital

K3 Capital Group plc is a multi-disciplinary professional services firm providing advisory services to SMEs, with operations throughout the UK and overseas.

Services provided by KBS Corporate, KBS Corporate Finance, Knightsbridge and KBS Capital Markets:

Services provided by RandD UK Limited:

Services provided by Quantuma Advisory Limited:

The Group's medium-term strategy is to build a wider group of growing and complementary professional services businesses to provide SME's with high quality advice across specialist disciplines.

K3 Capital Group trades on the London Stock Exchange (AIM: K3C.L), having listed on 11 April 2017. Please visit www.k3capitalgroupplc.com for more information.