Published on: January 20, 2015
Positive H1 trading update
K3‘s trading update for the first half (six months to the end of December 2014) of its current financial year notes that trading is in line with management’s expectations. Importantly, though, it also flags 20% revenue growth versus the first half of last year – mainly driven by the Group’s AX solution. After good growth in the second half of the last financial year, this performance continues to reflect the investment previously made and the management team’s strategic focus on expanding its reseller channels while improving sales of its existing software products. We are increasing our revenue estimates for FY15E and FY16E by 2% in each year. Associated Adjusted EBITDA estimates increase by around 1% as we note the continued investment which is taking place.