New Contract Win

17 Jun 2005 07:00

K3 Business Technology Group PLC17 June 2005 K3 BUSINESS TECHOLOGY GROUP PLC ("K3") ANNOUNCES NEW CONTRACT WIN K3, the IT solutions provider to the supply chain sector, is pleased to announcethat Information Engineering Group Limited ("IEG"), the software provider to themanufacturing sector which K3 is in the process of acquiring, has secured acontract with Doncaster Group Limited ("Doncaster"), worth a total ofapproximately £2.0 million over the next 10 months. Doncaster is a leading manufacturer of precision components and assemblies forthe aerospace, power generation, specialty automotive and medical orthopaedicindustries, with operations in Europe, the US and Mexico. IEG will be supplyingand implementing SYSPRO software in 13 of Doncaster's manufacturing sites in theUK and US. The SYSPRO suite of software is specifically tailored for themanufacturing sector and provides mid-range manufacturers with a completeenterprise resource planning solution, enabling them to manage and control themanufacturing process as well as the financial and distributions functions. IEGwill begin implementing the software this month and will complete the roll-outby March next year. K3's acquisition of IEG remains conditional, amongst other things, onshareholder approval at K3's extraordinary general meeting on 20 June 2005. Theacquisition is expected to complete on 21 June 2005. This new agreement takes the total value of new orders secured by K3 since thebeginning of the new financial year to £8.7million. This includes a £4.5mcontract signed in May with Carpetright plc, the carpet & floor coveringsretailer. Under the terms of the contract with Carpetright, K3's retail softwaredivision will be installing Microsoft Navision business management softwareacross 450 Carpetright stores, with on-going support provided thereafter. Othernew contracts were signed with: Scotts of Stow, the mail order specialist; MossPharmacy, the UK's third largest pharmacist and Space NK, the beauty productsretailers. Andy Makeham, CEO, of K3 commented, "This is a significant contract win for IEG and demonstrates the strength ofIEG's position in the mid-range manufacturing software market and the excellenceof their implementation team, as well as the quality of the SYSPRO software. The contract with Doncaster follows a total of £6.7 m of new agreements, signedover the first half, by our retail software division, K3Landsteiner, and ourdistribution software division, K3 Elucid. In particular, in May, we weredelighted when K3 Landsteiner secured a £4.5m agreement with Carpetright plc toinstall and support new business management software across 450 stores. Thesesuccesses support our strategy for the Group and give us great confidence forthe future." Enquiries: K3 Business Technology Group T: 01282 864111 Andy Makeham, Chief Executive David Bolton, Finance Director Biddicks T: 020 7448 1000 Katie Tzouliadis This information is provided by RNS The company news service from the London Stock Exchange