Under pressure: K3 to put loss-making UK Microsoft Dynamics reseller biz into administration

AIM-listed software and managed services outfit K3 is to put its loss-making Microsoft Dynamics reseller division into the hands of administrators amid commercial unpredictability caused by COVID-19. The news was delivered to investors this morning, along with confirmation that the mid-range ERP house had got a £6m loan from …

[Daniel von Asmuth]

K3?

K3 is a band that is popular with young girls in the Low Countries.

https://en.wikipedia.org/wiki/K3_%28band%29

[Ken Moorhouse]

K3

Unfortunate choice of name when discussing the possibility of a mountainous debt pile.

[Anonymous Coward]

Re: K3

K3 has grown through purchasing other companies (I know of Sage ERP support providers for at the time Line 500/1000 being gobbled up), so not surprised they have a mountain of debt.

[HmmmYes]

I'm not really sure how a MS dynamis reseller can run out of cash.

I've not looked but id guess they get licenses on long invoice from MS.

Bill up front for any work.

Unless they are doing bill on success. And are crap.

[Timbo]

"I'm not really sure how a MS dynamis reseller can run out of cash."

Justa guess, but maybe they pay low salaries and high commission rates based on the number of licenses each person can sell?

So, a successful year leads to high overheads, which is great if the licensee stays for the long term, but in a growth period, commission payments could easily outweigh license fees?

[Anonymous Coward]

Poor

I think they were just very poor at what they did, through personal experience, so no surprise to me