Published on: October 22, 2019
Market headwinds conspire to impact FY19
K3 has updated the market this morning, detailing a number of negatives impacting on current performance which combine to drive a material downgrade in expected profitability for the full year. The key issues relate to one large customer entering administration (we believe this to be Bonmarche) and, separately, a major new order being “put on hold” by the potential client. We downgrade 2019E and 2020E estimates as detailed below, but take comfort from positive comments around market positioning and outlook.