K3 Business Technology Group Regulatory News (KBT)

AIM: KBT

 K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Trading Update

K3, which provides and supports Enterprise Resource Planning software, hosting and managed services to the supply chain industry, is providing the following update on trading for the financial year ending 30 June 2013.

In its AGM statement issued on 5 December 2012, K3 reported that in a year of significant investment, the short term trading environment remained tough, with customers continuing to defer spending decisions, and that a number of key deals would help to realise market expectations for the financial year. It is now clear that due to the deferral in signing certain significant Retail deals, coupled with investment in the Group's Microsoft AX offering, K3 will generate pre-tax profits below current market forecasts. Outside the Retail space, the Board is pleased with the performance of the Group.

K3 is in the process of creating a major new global Retail solution built around Microsoft's latest AX technology. This development project is progressing well and we are encouraged by early implementations and the growing pipeline of interest. Developing 'IP' and global channels to market, together with Managed Services, will help to drive K3's medium and long term growth and is expected to yield significant returns in the future.

Half year results for the six months ending 31 December 2012 are expected to be published in mid March when the Directors will comment further on current trading.

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