Published on: December 12, 2017
Trading on track; executing on strategy
K3 has issued a trading update for the period to 30 November which confirms steady execution of its strategic plans, and outlines the changes that will result from its operational resource review. Today’s update says that trading over the period from the end of June (as it transitions to a November year-end) has been in line with management expectations with a number of new customers signed. Net debt is much improved. The resource review has produced a number of changes which will focus on producing better customer delivery and increased own IP (Intellectual Property) sales and recurring revenue. This includes the Imagine suite (comprising the NextGen platform and accompanying modules) which has shown further progress. K3 also announces that Stuart Darling will become Chairman on a permanent basis. We note the positive tone on future delivery and leave estimates unchanged, apart from reflecting the improved estimated FY 2017E net debt number.