Published on: March 21, 2016

First half results in line as progress continues

K3’s first half results for its current financial year to the end of June 2016 are in line with management expectations and reflect a strong performance from retail activities and cloud hosting. The Group has continued to progress its strategy of transitioning the business into a software vendor with product suites that contain increasing levels of its intellectual property and the outlook remains positive. Group revenue growth reflected the anticipated combined effects of a shift towards cloud-based consumption and a weaker Euro than in the comparator period. Profitability showed the expected improvement with useful sales through channel partners (a key focus for expansion) complementing direct sales and cost reductions. As flagged, net debt was at a reduced £10.45m. We adjust estimates to reflect, inter alia, the evolving revenue and investment profiles.