K3 issues full-year profits warning

SALFORD business software provider K3 Business Technology has warned its full-year revenue and profits will come in below market forecasts.

AIM-listed K3 supplies and supports Microsoft-based enterprise resource planning (ERP) software – a retail system that manages everything from stock to till sales.

The company said it had won some major new retail orders, worth £10m, but continuing deferrals by some clients would hit the full-year performance.

Chief executive Andy Makeham said: “Whilst clearly disappointed by the order slippage, we are nevertheless pleased in the step change in order wins for both our AX and NAV solutions in what remains a difficult market.

“It is also very encouraging that some major retail names are selecting our new Gemstone solution [a new retail service supported by Microsoft]. K3 delivers good levels of profits, and the underlying cash generation and strong levels of recurring revenues help to underpin the business.”