Published on: January 20, 2016
First half trading update in line
K3’s trading update for the first half of its current financial year highlights progress in advancing the Group’s strategy of transitioning the business into a software vendor with product suites that contain increasing levels of its intellectual property. There was evidence of success in improving sales through channel partners too. While revenues in H1 16 are expected to be flat, the expected reduction in costs has produced a ‘significant’ year-on-year increase in profitability. Net debt is flagged at a reduced £10.4m. We leave our full-year estimates unchanged ahead of the results announcement which is scheduled for mid-March 2016.