Published on: March 17, 2014
Interim results confirm improved performance
K3’s interim results continue the positive tone of its January trading update. The Group’s 9% improvement in revenue and a 24% increase in Adjusted EBITDA underline the turnaround in performance of the Microsoft UK and Managed Services Divisions – the latter moving into profitability. K3’s Microsoft Dynamics AX solution (the fruit of the Gemstone project) branded as “ax|is” reports early success with £8.3 million of new contracts in both its initial fashion-sector focused form and the core ax|is solution. The announcement flags further investment and development to come. The SYSPRO and Sage Division continues to produce strong recurring revenues. The outlook statement highlights the benefits of previous investment and reiterates the longer term growth opportunities. With the announcement noting that the first half performance underpins full year forecasts, we leave our estimates of adjusted numbers unaltered.