K3 Business Technology 12, 18 Mos Trading In Line With Market Views

LONDON (Dow Jones)--K3 Business Technology Group PLC (KBT.LN), a computer software and consultancy company, announced Tuesday that results for the 12 and 18 month periods ended Jun. 30, are anticipated to be in line with market expectations. MAIN FACTS: -Despite the difficult economic backdrop, trading across both the Group's divisions, Retail Software and Manufacturing Software, has been encouraging. -In addition, the high levels of predictable income, generated from software license renewals and maintenance revenues, continue to support K3's performance. -The Group generates good cash flows, with a seasonal weighting in October-December and, notwithstanding the three cash-based acquisitions completed between March and Jun. 30, net debt at Jun. 30, has reduced by GBP2.5 million from the same point last year (2009: GBP13.53 million). -The Retail Software Division made good progress over the twelve month period ended Jun. 30, securing more new business wins than during the same period last year, with growth led by K3's multi-channel retail offering. -The company has achieved a significant overall improvement in the Division's European retail software operations, based in Holland, and IKEA's recent decision to standardize franchisee IT platforms should benefit the Dutch operations over the next three years. -The Manufacturing Software Division saw a slow start to 2010 but finished the 12 months to Jun. 30 ahead of last year's result, with its performance supported by steady levels of services income and a marked pick up in new business pipelines in the final quarter of that period. -Its K3 AX unit, which addresses the process manufacturing marketplace, improved markedly year on year, with the benefits of the reorganization completed in 2009 coming through, and new business pipelines look strong. -Its three recent acquisitions, Digimis, the cloud computing services provider, Pebblestone Netherlands, the specialist ERP solutions provider to the fashion industry, and Pebblestone IP, are integrating well. -They open up new opportunities for the Group, especially as the company expands its managed services offering and build its European activities. -The strategic partnership we signed with Omnica Ltd, the multi-channel retail software solutions specialist, at the end of June also strengthens its multi-channel offering to retailers. -Shares at closed Tuesday at 119 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com (END) Dow Jones Newswires July 13, 2010 02:24 ET (06:24 GMT)