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LONDON (Alliance News) - K3 Business Technology Group PLC Monday upped its total dividend for the year ended June 30 as it posted a rise in pretax profit, and expressed confidence for "another year of progression".
The company proposed a total dividend of 1.25 pence, up from 1.0 pence in the previous year.
K3 provides software for the retail, manufacturing and distribution sectors. The company posted a pretax profit of GBP1.9 million, up from GBP462,000 in the previous year, as revenue rose to GBP72.0 million, up from GBP63.5 million in the previous year.
During the year the company posted exceptional reorganisation costs of GBP1.7 million, relating to the restructuring of its Microsoft UK division and Managed Services division to help accelerate them to return to profitability. It does not expect major exceptional costs in the coming year.
Revenue growth was driven by an improved performance at the company's Microsoft-based activities, particularly its new Microsoft Dynamics AX-based product 'ax|is'.
K3 secured orders of GBP12.6 million for the new product during the year across nine contracts. Although the company's focus has been primarily on the new product, its traditional Microsoft Dynamics NAV business returned to growth with two major contracts worth GBP1.3 million during the year.
In the company's SYSPRO and Sage division, revenue rose slightly to GBP26.02 million from GBP25.4 million in the previous year, as it secured 14 new wins during the year at SYSPRO and 87 deals in Sage.
"Today's results show an encouraging improvement in the business which is expected to continue into 2014/15," said Chairman Tom Milne in a statement. "With a strong pipeline of opportunities ahead, supported by a stable and profitable underlying business, the outlook for K3 is particularly encouraging."
Shares in K3 were trading up 2.8% at 220.00 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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