K3 beats off adverse currency trends to take revenue to £83.43m

MANCHESTER-based IT solutions specialist K3 Business Technology is celebrating soaring revenue to £83.43m, profits up to £8.15m and a major contract win.

The company’s year end results to June 30 show a 16% increase in turnover and a 12% rise in adjusted profit from operations.

All this is despite increased investment, some adverse currency impact and a weak Dutch market which has necessitated some restructuring there.

Software licence sales were up 7% to £13.83m and service revenue also rose 25% to £13.83m.

In addition, the company  benefited from an enhanced relationship with Microsoft after K3 became an “inner circle” partner.

Meanwhile, K3 has announced a deal for its “ax l is fashion” solution with TriStyle Mode GmbH, a major European mail order fashion retailer.
 
The order has been secured through K3’s channel partner in Germany and is its first order though a global systems integrator.
 
The value of the software licence sale to K3 is not being disclosed for commercial reasons.

The win is expected to generate ongoing revenues for K3 through licence support.

K3 chairman Lars-Olof Norell, said: “The growth of the business has been excellent, reflecting progress with both our new and existing product offerings.
 
“Record software licence sales over the last two years were the key driver to the 16% rise in Group revenues to £83.43m.
 
Adjusted profit from operations increased by 12% to £8.15m following significant investment in the business, adverse currency impact and the weak Dutch market, where we have now resized the business.
 
“We are pleased with the progress we are making in transitioning K3 into a software vendor with product suites that contain increasing levels of our own intellectual property.
 
“Microsoft’s recognition of K3 as an inner circle member, one of a small elite of preferred partners globally, directly reflects its support for our development work with our Microsoft Dynamics offerings. We expect our enhanced relationship with Microsoft to help to open up further opportunities for us.”