15th Sep 2015 06:55
LONDON (Alliance News) - K3 Business Technology Group PLC on Tuesday said it has won a major contract in the fashion retail sector as it posted a sharp rise in pretax profit for the year to the end of June, driven by higher revenue across the company.
The company, which supplies IT services to retail, manufacturing and distribution companies, said it has secured a contract with TriStyle Mode GmbH, a European mail order fashion retailer, through its German channel partner.
The group did not disclose the value of the deal but said the deal is expected to generate ongoing revenue for the company through licence support work. It is the company's first win in Germany and first via a channel partner.
The win came as the company said its pretax profit for the 12 months to the end of June more than doubled to GBP3.9 million from GBP1.9 million a year earlier, as its revenue rose to GBP83.4 million from GBP72.0 million and recurring income increased 13%, up to GBP39.9 million from GBP35.4 million.
The group said its software licence sales rose by 7% in the year, while services revenue was up by 25%, driven by a strong year for major orders and progress made on its channel partner sales.
K3, which does not pay an interim dividend, said hiked its final dividend to 1.50 pence per share from 1.25p.
"Growth prospects for our business look good for the new financial year. There are strong growth drivers, including channel partner sales and hosting. This, combined with our initiatives to improve margins and costs, leaves the Group well positioned to drive further increases in profit and strong cash flow," said Lars-Olof Norell, K3's chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
K3 Business Technology Group