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K3 Business Technology Group PLC (GB:KBT)
LSE:KBT
UK Market

K3 Business Technology (KBT) AI Stock Analysis

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K3 Business Technology

(LSE:KBT)

Rating:49Neutral
Price Target:
87.00p
▲(12.26%Upside)
The overall score reflects significant challenges in financial performance, particularly declining revenues and profitability, combined with bearish technical indicators. The high P/E ratio suggests potential overvaluation. Recent positive corporate events provide some stability, but not enough to offset other concerns.

K3 Business Technology (KBT) vs. iShares MSCI United Kingdom ETF (EWC)

K3 Business Technology Business Overview & Revenue Model

Company DescriptionK3 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 MoneyK3 Business Technology generates revenue through a combination of software licensing, subscription services, and professional services. The company sells licenses for its proprietary software solutions and offers cloud-based subscriptions for ongoing access and updates. Additionally, KBT provides consulting, implementation, and support services, which contribute to its revenue. Key partnerships with technology providers and system integrators enhance its product offerings and market reach, thereby driving sales and recurring revenue streams.

K3 Business Technology Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue38.98M43.78M47.53M45.27M48.82M78.41M
Gross Profit23.73M27.14M28.15M26.84M28.71M40.04M
EBITDA3.09M830.00K1.70M804.00K-13.52M7.98M
Net Income-2.44M-2.38M-4.09M-8.76M-20.95M-15.45M
Balance Sheet
Total Assets70.32M45.00M53.09M55.91M70.32M90.85M
Cash, Cash Equivalents and Short-Term Investments9.31M8.30M7.11M9.15M9.31M8.23M
Total Debt15.10M996.00K931.00K1.87M15.10M14.56M
Total Liabilities40.41M17.73M20.45M20.11M40.41M41.59M
Stockholders Equity29.91M27.28M32.64M35.80M29.91M49.26M
Cash Flow
Free Cash Flow-486.00K2.06M-143.00K-4.15M3.00M751.00K
Operating Cash Flow389.00K3.38M2.43M-507.00K8.23M5.50M
Investing Cash Flow-961.00K-1.41M-2.75M11.12M-5.23M-4.75M
Financing Cash Flow-967.00K-870.00K-1.47M-8.83M743.00K-3.76M

K3 Business Technology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price77.50
Price Trends
50DMA
87.71
Negative
100DMA
91.97
Negative
200DMA
82.98
Negative
Market Momentum
MACD
-2.61
Positive
RSI
12.52
Positive
STOCH
2.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KBT, the sentiment is Negative. The current price of 77.5 is below the 20-day moving average (MA) of 86.38, below the 50-day MA of 87.71, and below the 200-day MA of 82.98, indicating a bearish trend. The MACD of -2.61 indicates Positive momentum. The RSI at 12.52 is Positive, neither overbought nor oversold. The STOCH value of 2.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KBT.

K3 Business Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
52
Neutral
£53.74M-8.80%6.21%17.82%
GBKBT
49
Neutral
£35.56M65.13-8.92%-46.97%
GBTIA
£15.70M-60.02%
GBTPX
50
Neutral
£19.81M-21.01%-5.32%36.28%
GBTRD
48
Neutral
£52.26M30.2141.96%2.67%26.44%
GBGST
44
Neutral
£30.31M-9.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:KBT
K3 Business Technology
77.50
-18.00
-18.85%
GB:TIA
IDE Group Holdings Plc
64.00
11.50
21.90%
GB:TRD
Triad Group plc
300.00
-3.78
-1.24%
GB:GST
GSTechnologies
1.38
0.68
97.14%
GB:TPX
TPXimpact Holdings PLC
22.00
-21.50
-49.43%
GB:MTEC
Made Tech Group PLC
36.25
19.75
119.70%

K3 Business Technology Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
K3 Business Technology Plans £29 Million Shareholder Return and AIM Delisting
Neutral
Jul 2, 2025

K3 Business Technology Group PLC has announced a proposal to return up to £29.0 million to shareholders through a tender offer, following the sale of Nexsys Solutions Limited. The company also plans to delist from AIM, aiming to stabilize its remaining operations and achieve cash flow breakeven, while ensuring a fair and efficient capital distribution to shareholders.

Delistings and Listing ChangesBusiness Operations and Strategy
K3 Business Technology Secures Court Approval for Capital Reduction
Neutral
Jun 11, 2025

K3 Business Technology Group PLC has received court approval for its Share Capital Reduction, a move that will enable the company to return approximately £29 million to shareholders through a Tender Offer and subsequently de-list from AIM. This strategic financial restructuring is expected to impact the company’s market presence and shareholder value.

Regulatory Filings and Compliance
K3 Business Technology Announces Share Issuance Update
Neutral
Jun 4, 2025

K3 Business Technology Group PLC announced that as of May 30, 2025, it has 45,932,379 ordinary shares in issue. This information is crucial for shareholders to determine their reporting obligations under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments in the company.

Delistings and Listing ChangesBusiness Operations and Strategy
K3 Business Technology Announces Change in Voting Rights
Neutral
Jun 3, 2025

K3 Business Technology Group PLC has announced a change in the percentage of voting rights controlled by Canaccord Genuity Group Inc., a financial services company based in Vancouver, Canada. The change, which reduced the voting rights from 15.3692% to 14.9677%, was due to dilution caused by the admission to trading of 600,000 shares from Treasury on AIM. This adjustment in voting rights reflects a strategic shift in the company’s shareholder structure, potentially impacting its governance and decision-making processes.

Private Placements and FinancingBusiness Operations and Strategy
Kestrel Partners LLP Increases Stake in K3 Business Technology
Neutral
May 29, 2025

K3 Business Technology Group PLC announced that Kestrel Partners LLP has acquired 600,000 ordinary shares in the company through a warrant exercise, increasing Kestrel’s indirect voting rights to 29.59% of the company’s issued share capital. This acquisition highlights Kestrel’s significant influence within K3, potentially impacting the company’s strategic decisions and stakeholder interests.

Business Operations and Strategy
K3 Business Technology Group PLC Announces Change in Voting Rights
Neutral
May 23, 2025

K3 Business Technology Group PLC has announced a change in its voting rights structure, with Johan Claesson now holding a 25% stake in the company. This increase from a previous 24% stake indicates a consolidation of control, potentially impacting the company’s strategic decisions and stakeholder interests.

Private Placements and Financing
K3 Business Technology Expands Share Capital with Warrant Exercise
Neutral
May 22, 2025

K3 Business Technology Group PLC announced the exercise of warrants by Kestrel Partners LLP, resulting in the issuance of 600,000 new shares. This move, linked to loans from the early pandemic period, increases K3’s total voting rights to 45,932,379, potentially impacting shareholder calculations and market positioning.

Private Placements and Financing
K3 Business Technology Expands Share Capital with Warrant Exercise
Neutral
May 19, 2025

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.

Delistings and Listing ChangesBusiness Operations and Strategy
K3 Business Technology Announces Share Capital Reduction and Strategic Shift
Neutral
Apr 24, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
K3 Business Technology Group PLC Announces Successful AGM Outcomes
Positive
Apr 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025