K3 Business Technology Group Regulatory News (KBT)

AIM: KBT

11 June 2018

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group" or "the Company")

Provider of mission-critical software (owned and third party), cloud solutions and managed services to the supply chain sector

Contract Wins

K3, the business technology company, is pleased to announce the signing of a new significant contract for "ax l is fashion". This contract brings the total value of new "ax l is fashion" orders secured since the start of the current financial year to c.£1.8m, spread over the next two to three years. "ax I is fashion" is a K3 authored software solution for Enterprise fashion companies, based on the Microsoft Dynamics platform.

Of the seven orders secured since the start of the new financial year, six were delivered through K3's channel partner network. This reflects K3's strategy to capture more of the sales and earnings potential of "ax I is fashion" through closer strategic relationships with System Integrators. 

Newly won customers since the beginning of May 2018 include Engbers, Germany's largest shirt manufacturer, Mole Valley Farmers, the UK-based rural retailer, and Van Bommel, the long-established Dutch shoemaker, with an existing K3 customer, Eton Shirts, moving to a major roll-out of the solution.

As previously announced, the Company has seen a significant upturn in sales of "ax l is fashion" and the closure of these seven orders compares with seven secured over the 17 months to November 2017. The pipeline of prospects for this market-leading product continues to remain very encouraging. 

Adalsteinn Valdimarsson, Chief Executive Officer of K3, said:

"We are delighted with the momentum we are seeing with sales of "ax l is fashion". The number of deal closures secured since the start of the new financial year is significantly higher than the prior 17 months. This reflects a number of factors, including our renewed focus on more strategic engagement with channel partners to drive the sales potential of this solution. We expect to see continuing growth, underpinned by an active pipeline of new business opportunities."

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