Salford’s K3 Business Technology, which provides business‐critical software solutions to fashion and apparel brands, has said operating profit for the year is expected to be in line with market expectations in a trading update for the financial year ending November 30.
It added that it has closed the financial year‐end with cash balances at £8.3m, ahead of market expectations, despite a previously reported lower demand and activity in global accounts.
The Group said its profit and cash generation is traditionally stronger in the second half of the financial year, benefiting from software licence and maintenance and support contract renewals, particularly at NexSys, where renewals were c.98%, in line with prior years.
Cash generation also benefited from greater discipline on costs and investing activities, although flows in the second half were reduced by cash restructuring costs.
The Group’s flagship K3 Fashion product set delivered over 25% growth in annualised recurring revenue on a constant currency basis.
The K3 board said it “remains committed to ongoing operational simplification, and the leadership and operational changes, put in place in the final quarter of the financial year, are enabling greater cost discipline. The delegation of responsibility to the leadership teams will also better capture the growth opportunities within each business unit, which should ultimately lead to greater shareholder returns.
The Company also announced that its nominated adviser and broker has changed its name to Cavendish Capital Markets Limited following the completion of its corporate merger.
Final results for FY23 are expected to be published towards the end of March 2024.
