17th Mar 2015 11:05
LONDON (Alliance News) - K3 Business Technology Group PLC on Tuesday said its pretax profit doubled in the first half of its financial year on the back of higher revenue and growth in its recurring income stream.
K3, which provides software platforms for the retail, manufacturing and distribution sectors, said its pretax profit for the six months to the end of December was GBP1.8 million, up from GBP0.9 million a year earlier.
Revenue increased to GBP41.7 million from GBP34.5 million, and the group's recurring income increased to GBP19.8 million from GBP17.9 million. Software licence sales increased 34% to GBP7.6 million, while services income rose to GBP11.9 million, up 30% year-on-year. Across all product lines, major new orders increased to GBP12.3 million, the company said.
K3 said its prospects for growth remain strong, though it warned that some cost-related challenges with regards the implementation of some contracts remain in play. It added it intends to focus in the second half on extending its own intellectual property across its core service offerings.
"While cost-related challenges remain, we continue to be confident of the exciting growth prospects available to us," said K3 Chairman Lars-Olof Norell.
Shares in K3 were down 1.1% to 225.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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