22nd Oct 2019 12:40
(Alliance News) - K3 Business Technology Group PLC said Tuesday it expects results for the financial year ending November 30 to be "significantly below current market expectations" after a major new contract in the final process of agreement has been put on hold and a large customer entered into administration.
The software, cloud solution and managed services company also noted that "certain customers are choosing to purchase additional software license tranches at a slower pace than anticipated".
K3 said it estimates that group's adjusted operating profit for the year will be GBP1.5 million and its net debt position to be GBP2.2 million.
"Looking into the next financial year and beyond therefore, the board is optimistic of the company generating much improved levels of profitability and cash generation," the company said in a statement.
Back in July, K3 reported a widened pretax loss for the first half of its financial year due to contract delays which hurt its Services unit activity and gross margin.
K3 shares were down 1.4% in London at 208.00 pence each on Tuesday at midday.
By Loreta Juodagalvyte; [email protected]
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