K3 on course to exceed expectations after strong trading

K3 Business Technology on Monday reported that an “encouraging” second half of the year has set the company on course to achieve full-year results “slightly ahead” of market expectations.

The AIM traded company, which provides business software, cloud solutions and managed services to the retail, manufacturing and distribution sectors, said that improvements such as a reduction in net debt from £4.3m to approximately £0.7m over the year ended 30 November reflect a reduced cost base and better working capital management.

Changes made to reposition the group for a return to profitable growth continue to flow, said a statement from K3.

Currently, K3 is focussed on sales growth for K3 Fashion, which won “major agreements” with European sportswear manufacturer Oberalp Group and US manufacturer and distributor Columbia Sportswear during the period.

Meanwhile, K3 Imagine, a cloud platform allowing for quick integration of software apps into existing systems or modules stacked together independently, continued to gain traction with several projects now underway both with existing and new customers.

“The board continues to view prospects for progress positively and will provide a further update on trading with final results, which are expected to be issued in mid-March 2019,” said a statement from K3.

K3 Business Technology’s shares were down 1.03% at 223.00p at 0856 GMT.