K3 Business Technology Group PLC Pre-close Trading Update (1323E)
14 July 2016 - 4:00PM
UK Regulatory
TIDMKBT
RNS Number : 1323E
K3 Business Technology Group PLC
14 July 2016
14 July 2016
AIM: KBT
K3 Business Technology Group
("K3" or "the Group")
Pre-close Trading Update
K3, which provides and supports software, hosting and managed
services to the retail, manufacturing and distribution sectors,
provides the following update on trading for the financial year to
30 June 2016.
The Group's overall trading performance remains encouraging,
particularly in core sectors, and results for the full year are
expected to be broadly in line with market expectations,
notwithstanding the impact of a major customer entering
administration in June. The seasonally important final months of
the period saw a pleasing level of contract wins and the new
business pipeline continues to provide significant opportunities
for the new financial year. Contracts wins and renewals also
supported significant new business for K3 hosting. Recurring income
(from software licence renewals, support contracts and hosting)
remains high and is expected to show a year-on-year increase as the
Group continues to transition to a product/cloud-centred
business.
The integration of the DdD business, acquired in April, which
provides proprietary cloud-based software for retailers, is
progressing well and is expected to be earnings enhancing in the
next financial year.
The Group's net debt at the year end is expected to show a
reduction to GBP8.9m, representing a year-on-year decrease of
GBP3.2m (30 June 2015: GBP12.10m; decrease of GBP1.55m).
The Board looks forward to providing further information on
trading with the publication of K3's full year results in
mid-September.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Enquiries:
K3 Business David Bolton, Chief T: 0161 876
Technology Executive 4498
Group plc Brian Davis, Chief
Financial Officer
finnCap Limited Julian Blunt/James T: 020 7220
(NOMAD & Broker) Thompson 0500
Corporate broking:
Malar Velaigam
KTZ Communications Katie Tzouliadis, T: 020 3178
Viktoria Langley, 6378
Emma Pearson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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