Manchester software firm raises £2.7m through share placement
Salford Quays-based software firm, K3 Business Technology, has raised £2.7m by brokering shares to new and existing shareholders.
The business said it would use the funds to reduce debts and as working capital, whilst simultaneously satisfying a market demand for shares and broadening its stakeholder base.
K3 Business Technology placed over 2.8m shares at 25 pence each, which will be admitted onto the AIM stock exchange from 8 o’clock on 22nd March.
In the company’s latest financial results, released last week, it reported weak results with a 5% reduction in revenues, while adjusted profit from operations decreased by just over 57%.
Commenting on the results, chairman of K3 Tom Milne, said: “This has been a difficult period for K3 with delays in closing key deals in our UK retail software business combining with a major investment in AX for Retail development and resourcing.
“Economic difficulties in the UK and European retail markets are leading to deals being deferred.
“Despite this background our other operations have been holding up well with Syspro performing exceptionally in the first six months.
“Developing intellectual property and global channels to market, together with Managed Services in the medium term, will help to drive K3’s growth and is expected to yield significant returns in the future.”