Published on: July 10, 2015

FY15 pre-close trading update broadly in line

K3 has issued a pre-close trading update for the financial year to the end of June 2015 which notes continued progress in the second half of the year. The update confirms further advances with K3’s intellectual property (K3 IP) growth strategy. Full year results are expected to be broadly in line with market expectations although the announcement notes that performance has continued to be affected by the slow Dutch retail and fashion markets and by euro weakness against sterling. The reduction in net debt to £12.1 million at the end of June 2015 (June 2014: £13.6 million) is a welcome improvement and considerably better than our estimate of £15.0 million. We make no changes to estimates apart from adjusting FY15E net debt.