K3 Business Technology trades in line during October

Software firm K3 Business Technology said on Monday that second-half trading had been in line with management expectations, with its own intellectual property and global accounts businesses showing particular resilience.

K3 highlighted that October was "an important month" for annual software licence and maintenance contract renewals and stated that these had "progressed well", with renewal rates tracking at "normal high levels".

The AIM-listed group highlighted that management had continued to focus strategically on "the significant opportunity to expand own IP sales", particularly of its K3|imagine platform, and had also made a number of new appointments to strengthen its senior team as it actively explored "a range of options" to simplify the group's structure.

K3 added that net bank debt was £6.2m at the end of September, historically the point of peak borrowing for the company, but stated that cash balances had grown "strongly" throughout October thanks to the aforementioned annual renewal receipts.

As of 0955 GMT, K3 shares were up 2.68% at 94.98p.