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K3 Business Technology Group PLC - Enterprise software company - Half year results in line with management expectations as pretax loss widens to GBP4.8 million in the six months ended May 31 from GBP1.4 million a year prior. First half revenue rose 0.7% year-on-year to GBP23.2 million from GBP23.1 million.
Loss reflects increased sales costs of GBP10.2 million, up 11% from GBP9.1 million, and 70% higher depreciation and amortisation expenses, totalling GBP3.8 million compared to GBP1.2 million a year before. Also, reports finance expenses of GBP1.2 million in the first half of financial 2021, compared to only GBP10,000 a year prior.
Plans to grow sales of software based on its own intellectual property to generate high-margin recurring income. Says own-IP sales accounted for 36% of total revenue, bringing in GBP8.4 million in the first half, down 1.2% from GBP8.5 million a year prior, when own-IP sales accounted for 37% of total revenue. Considers initiatives to improve cash conversion and enhance company productivity.
"The fundamental shift that is under way in the retail sector, with customers changing the way that they shop, engage with brands, and judge brand values, is driving a requirement for new solutions, including in AI. K3 provides a channel to readily-adoptable, leading-edge solutions to these commercial issues, and is therefore well-positioned," says Chief Executive Marco Vergani.
Current stock price: 201.50 pence, down 4.5% on Monday morning
Year-to-date change: up 83%
By Scarlett Butler; scarlettbutler@alliancenews.com
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