18th Jun 2019 14:40
(Alliance News) - K3 Business Technology Group PLC on Tuesday said that while it is on track to meet market expectations, the year will be more heavily weighted to the second half than in previous years.
Shares in K3 Business were down 4.6% at 210.00 pence in afternoon trade.
The business software, cloud solution, and managed services company said the second-half weighted results are due to a larger number of software licences and maintenance contract renewals in the final quarter, as well as Brexit disruption which was "felt in prolonged customer decision-making processes".
K3 Business believes it is on course to meet current market expectations, however, with "a number of major deals closed" in the first half and a healthy pipeline. Three new customers were signed for "K3 I fashion", including outdoor clothing brand Regatta, and "two existing customers significantly ramped-up software licence orders".
As at May 31, net debt is down 32% at GBP5.8 million from GBP8.5 million the year before, a trend which is set to continue.
"'K3 I Imagine', which is a cornerstone product in K3's transition to an [intellectual property]-lead organisation, is expected to make a meaningful contribution to the group's recurring revenue in the current financial year, from a standing start in November 2018. Imagine revenues are now being generated from software applications and platform access and the product has potential across the whole spectrum of the K3 customer base," said K3 Business.
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