Thursday, Sep 20 2012
News and Analysis
The acquisition of other resellers boosted the revenue of the K3 Business Technology Group
, a retail specialist based in the United Kingdom by 28 percent for the year ended June 30. Its profit rose by 28 percent although the final comprehensive income line was reduced by this year's currency losses, which contrasted with currency gains a year ago.
The company's Sage and Syspro division led the upward movement with a 54-percent increase in revenue, while the Microsoft division trailed, up only 9 percent. But the K3 said 2012 was a year of investment in Microsoft and its plans for investing in Dynamics AX and its Managed Services Division for fiscal 2013 signal that it sees those areas as major growth segments. Profit rose to about $8.8 million for 2012. But after adjusting for currency, hedging and other income and losses, comprehensive income was about $7.8 million, off 14.3 percent from 2011's total. Revenue for 2012 was about $110 million. K3 got into the Sage market in 2010 via acquisition and revenue from Sage 50, 200, X3 and related services were up sharply. Recurring revenue from Sage products was about $10.2 million, nearly three times last year's total. Syspro maintenance and support revenue was about $10.5 million, an increase of 3.7 percent from last year when calculated in pounds. The total was helped by November's acquisition of Fifth Dimension Systems. Total Sage and Syspro revenue was about $45 million. The Microsoft U.K. division had almost exactly the same amount of revenue, about $45 million for fiscal 2012. While the company acquired Azurri and the Retail Systems group in the first half of the year, operating profit was hit by a tough economy and by what it termed "bringing the Microsoft AX product in our line in line with our Microsoft Dynamics Nav portfolio." K3 had one major AX deal with which Microsoft is the primary contractor and K3 provides the specialized modules. Interesting and I don’t know whether that is a typical arrangement or not. The company now hosts Syspro, NAV and Sage 300 in New York, Edinburgh, Toronto and London. It reported that is offering low-cost “mini-hosting” for installations of up to 10 users. During the year, K3 received an inquiry about a possible sale of the group and it began exploring the market. But chairman Tom Milne reported the company ended the process when it did not receive acceptable proposals.
Last modified on Sunday, 16 June 2013
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.