K3 sells IBS to Azur

K3 has sold its Cheshire-based Enterprise Division, which looks after the IBS ERP system aimed at discrete and contract manufacturers, for just £2.5m to the Azur Group, which also runs Minerva Industrial Systems, Azur for SAP, M2 Systems and Azur Business Solutions. Minerva sells and implements the QAD Mfg/Pro ERP systems; Azur for SAP is aimed at SMEs, delivering all the options in that range; and M2 specialises in Peoplesoft Enterprise One, targeting organisations with turnovers between £10m and £200m. Azur Business Solutions provides its own I-CON360 system to contract manufacturing, service and construction companies. K3 says it will now focus on its Microsoft-centric ERP, CRM and supply chain systems, where it sees greatest growth. There are 85 UK installations of IBS, mostly in engineering and electronics, with substantial, although now ageing, installations at users like Thales, Raytheon, Lockheed Martin and GKN. This year, the division was forecast to generate £2.6m turnover, of which more than 50% is maintenance revenue. Azur is now forecasting turnover of £12m and a profit of £1.6m this year, with growth to £14.1m and a profit of £2.5m in 2005.