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Eric Dodd, CEO of fashion retail-focused software company K3 Business Technologies will be retiring from the Board and the company on 30 September 2025. The news was accompanied by an announcement that the business is considering a possible de-listing from the AIM.
Dodd joined the company two years ago as its CFO before taking over the helm last summer. During his time at K3 he is credited with having played a key role in reshaping the Group's cost base and implementing software provider's the simplification strategy. The latter included sale of NexSys Solutions Limited (see here), the company's largest business unit. The net proceeds from this disposal amounted to some £34.3m of which some £29m is to be returned to shareholders by way of a tender offer. The company does not intend to appoint a successor to Dodd and the remaining business unit heads will report directly to the Board.
With K3 now a shadow of its former self, the Board is considering whether continued admission to the AIM will be in the best interests of the company and its shareholders. The business has endured a tough time since its fortunes were badly hit by the impact of Covid on its core market. K3’s annual revenues have fallen from over £80m in 2018 to a run rate of nearer £23m today. FY24 saw company turnover form continuing operations shrink by 26% yoy to generate an adjusted operating loss for the period of £300K (see here), albeit the residual business will trade on a cash breakeven basis from last month onwards.
The continuing headwinds in its target vertical sector are being made stiffer by the looming prospect of a global trade war. Going forward, the company’s priorities remain focused on cash management and cost discipline. K3 faces another challenging year ahead irrespective of whether its is a public or private entity.
