9th Jul 2018 10:52
LONDON (Alliance News) - K3 Business Technology Group PLC on Monday expressed confidence for the reminder of the year after its loss narrowed in the first half due to reorganisation.
The company, which develops software systems for retail, manufacturing and distribution sector, said revenue in the six months to the end of May grew by 2.6% to GBP41.4 million from GBP40.3 million reported in the same period the prior year. The improvement reflects the benefits of restructuring and a refocused sales strategy.
Pretax loss narrowed to GBP1.0 million from GBP5.9 million a year earlier. K3 Business delivered adjusted pretax profit of GBP1.2 million compared to GBP3.6 million adjusted loss reported a year ago.
The company managed to cut administrative expenses to GBP22.1 million from GBP24.2 million the year before, while sales of K3 Business' IP software licences increased to GBP2.4 million from GBP1.3 million posted in the first half of 2017.
Looking forward, the company said it expects good growth with the ongoing development of channel partner sales and renewed sales momentum.
"These results are very encouraging with the group returning to underlying profitability," said Chief Executive Adalsteinn Valdimarsson.
"The second half is our stronger earnings period, reflecting the volume of software licence and support renewals in the final quarter of the financial year. It has started very encouragingly, with a healthy pipeline in place, and this, together with expected high renewals, gives us confidence that the group will make further progress over the remainder of the year," added Valdimarsson.
Shares in K3 Business were trading 6.7% higher on Monday at 218.75 pence each.
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