Trading Update

K3 CAPITAL GROUP PLC

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

Trading Update

K3 Capital Group plc, a multi-disciplinary professional services firm providing advisory services to SMEs, is pleased to announce a trading update for the six-month period ended 30 November 2020.

The Group delivered strong performance during the first half, resulting in trading being ahead of management's expectations with the Group expecting to report revenue of c.£18 million. All business divisions have performed well, with particularly strong performance across KBS and rannd. Quantuma's trading (which represents only four months contribution to Group revenue) has been in line with management's expectations despite the subdued insolvency market resulting from the Government's Covid-19 financial support measures. The Company has also repaid all monies claimed under the Government's Covid-19 Job Retention Scheme in the financial period.

A number of key milestones have been achieved during the period, including the completion of actions arising from the 100 day integration plans for both randd and Quantuma, as well as the entry into a joint venture agreement for the Group's new Market Mapping division. The businesses are operating well together and there has been significant traction in cross selling across the Group KBS being the third largest referrer to Quantuma during the period and 13% of randd's new client mandates were directly attribute to Group referrals. This is a further endorsement of the Group's strategy of building a wider group of growing and complementary professional services businesses to SMEs.

The Group enters its second half of the financial year with significant momentum and is excited by the strategic opportunity presented by the roll out of its data and marketing strategy across its recent acquisitions.

John Rigby, K3's CEO, commented,

"We are proud of the significant progress the Group has made, particularly as this is our inaugural set of results with respect of contributions from randd and Quantuma. The results provide further conviction of our strategy, with the Group's strong performance for this period underpinned by diversified revenue streams that can be generated across the business cycle, which we consider more important than ever given the economic backdrop.

The health, safety and wellbeing of our colleagues has remained paramount and despite the backdrop of the COVID-19 pandemic, colleagues have adapted well to remote working during lockdown periods. We consider the successful integration of randd and Quantuma and the fact the whole Group has operated without interruption a significant achievement and testament to the commitment and strategic focus of our team.

We continue to look for complementary businesses within the professional services space and consider there to be several complementary bolt-on opportunities. We remain confident of making further progress in the current financial year."

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

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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.