K3 Business Technology (KBT) AI Stock Analysis

• Market Cap: £41.56M
• Dividend Yield: N/A
• Average Volume (3M): 5.72K
• Price to Earnings (P/E): 78.2
• Beta (1Y): 0.35
• Revenue Growth: -46.97%
• EPS Growth: N/A
• Country: UK
• Employees: 243
• Sector: Technology
• Sector Strength: 76
• Industry: Information Technology Services
• EPS (TTM): 0.01
• Shares Outstanding: 44,732,380
• 10 Day Avg. Volume: 7,638
• 30 Day Avg. Volume: 5,719
• PEG Ratio: 7.46
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -91.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: 93.00p ▲( 0.00% Upside)

K3 Business Technology faces significant challenges with declining revenues and profitability, impacting its financial performance score. The technical analysis is mixed, with overbought signals and bearish momentum. Valuation concerns arise from a high P/E ratio, suggesting overvaluation. Corporate events show positive shareholder sentiment, but this does not offset the financial and technical challenges.

K3 Business Technology Business Overview & Revenue Model

Company Description

K3 Business Technology Group plc, together with its subsidiaries, provides mission-critical software and cloud solutions to the supply chain sector primarily in the United Kingdom. It operates through three segments: Own IP, Global Accounts, and Third-Party Products. The company offers K3|imagine, a cloud-native, ERP agnostic, and commerce and data platform; K3|fashion, a concept-to-consumer solution; K3|dataswitch, an integration engine; and K3|pebblestone, as well as SYSPRO and Sage products. It also provides computer software supply and consultancy services. In addition, the company provides installation, integration, and software development services; software maintenance renewals, support contracts, and software as a service; and hardware and other solutions. It also operates in the Netherlands, Ireland, rest of Europe, the Middle East, Asia, the United States, and internationally. The company was incorporated in 1991 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

K3 Business Technology generates revenue through the sale of its proprietary software solutions, subscription-based cloud services, and associated support services. The company licenses its ERP, CRM, and supply chain management software to businesses, which provides a steady stream of licensing fees. Additionally, K3 offers cloud hosting and managed services on a subscription basis, ensuring recurring revenue. The company also earns from professional services, including consulting, implementation, and ongoing technical support, which are integral for clients transitioning to or upgrading their systems. Strategic partnerships with technology giants enhance its offerings and market reach, contributing to its earnings.

K3 Business Technology Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
38.98M	43.78M	47.53M	45.27M	48.82M	78.41M
	Gross Profit
23.73M	27.14M	28.15M	26.84M	28.71M	40.04M
	EBIT
3.45M	-1.40M	-3.37M	-6.27M	-19.69M	-12.79M
	EBITDA
3.09M	830.00K	1.70M	804.00K	-13.52M	7.98M
	Net Income Common Stockholders
-2.44M	-2.38M	-4.09M	-8.76M	-20.95M	-15.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.31M	8.30M	7.11M	9.15M	9.31M	8.23M
	Total Assets
70.32M	45.00M	53.09M	55.91M	70.32M	90.85M
	Total Debt
15.10M	996.00K	931.00K	1.87M	15.10M	14.56M
	Net Debt
5.80M	-7.31M	-6.18M	-7.28M	5.80M	6.34M
	Total Liabilities
40.41M	17.73M	20.45M	20.11M	40.41M	41.59M
	Stockholders Equity
29.91M	27.28M	32.64M	35.80M	29.91M	49.26M
Cash Flow		Free Cash Flow
-486.00K	2.06M	-143.00K	-4.15M	3.00M	751.00K
	Operating Cash Flow
389.00K	3.38M	2.43M	-507.00K	8.23M	5.50M
	Investing Cash Flow
-961.00K	-1.41M	-2.75M	11.12M	-5.23M	-4.75M
	Financing Cash Flow
-967.00K	-870.00K	-1.47M	-8.83M	743.00K	-3.76M

K3 Business Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KBT, the sentiment is Positive. The current price of 93 is above the 20-day moving average (MA) of 88.15, above the 50-day MA of 91.56, and above the 200-day MA of 80.51, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 86.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KBT.

K3 Business Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
MTEC	52 Neutral	£43.67M	―	-8.80%	―	6.21%	17.82%
KBT	50 Neutral	£41.56M	78.15	-8.92%	―	-46.97%	―
TIA		£19.87M	―	-60.02%	―	―	―
TPX	50 Neutral	£21.20M	―	-30.86%	―	-5.32%	36.28%
TRD	48 Neutral	£49.65M	62.23	20.93%	2.10%	26.44%	―
GST	44 Neutral	£27.06M	―	-9.27%	―	―	―

K3 Business Technology Corporate Events

K3 Business Technology Expands Share Capital with Warrant Exercise

K3 Business Technology Group PLC has announced the exercise of 600,000 warrants by Johan Claesson’s associated companies, CA Fastigheter AB and Johannes Plan Fastigheter AB, originally granted in 2020. This move increases K3’s total issued ordinary share capital to 45,332,379 shares, all with equal voting rights, potentially impacting shareholder calculations and market positioning.

K3 Business Technology Announces Share Capital Reduction and Strategic Shift

K3 Business Technology Group PLC announced that its Share Capital Reduction was approved at the General Meeting, and the company will seek court confirmation to finalize the process. Following this, K3 plans to return approximately £29 million to shareholders via a Tender Offer and intends to de-list from AIM, signaling a significant shift in its market strategy.

K3 Business Technology Group PLC Announces Successful AGM Outcomes

K3 Business Technology Group PLC announced that all resolutions at its Annual General Meeting were passed, indicating strong shareholder support. This includes the re-election of directors and the authorization for directors to allot shares, reflecting stability and confidence in the company’s governance and strategic direction.

K3 Business Technology Announces CEO Retirement and Strategic Changes

K3 Business Technology Group PLC announced the retirement of CEO Eric Dodd, effective 30 September 2025. Dodd has been instrumental in reshaping the company’s cost structure and supporting shareholder value. Following the sale of its largest business unit, NexSys Solutions Limited, K3 plans to return approximately £29 million to shareholders and is considering a potential de-listing from AIM. The company will not appoint a new CEO, with business unit heads reporting directly to the Board.

K3 Business Technology Plans Shareholder Returns and Potential AIM De-listing

K3 Business Technology Group PLC has announced plans to return approximately £29 million to shareholders following the sale of NexSys Solutions Limited. The return of capital is contingent upon a share capital reduction, which requires shareholder approval and a court order. The company is also considering a potential de-listing from AIM to further streamline operations and reduce costs, with consultations planned with shareholders before any decision is made.

K3 Business Technology Reports Challenging Year with Strategic Sale

K3 Business Technology Group PLC reported a challenging year with a significant decrease in revenue from continuing operations, primarily due to reduced activity at Global Accounts. Despite this, the company managed to improve its adjusted operating loss and maintain strong financial discipline. The sale of NexSys Solutions Limited for £36.0m was a key highlight, allowing the company to plan a substantial return of cash to shareholders. The ongoing operations are expected to achieve cash breakeven by the end of February 2025, aligning with management expectations.