1 Jul 2009 07:00
KBT
1 July 2009
K3 BUSINESS TECHNOLOGY GROUP PLC
("K3" or the "Group")
TRADING UPDATE
K3, the IT solutions provider for retailers and manufacturers, announces the following trading update prior to entering its close period.
In a more challenging economic environment, the Directors are pleased to report that, during the six months to 30 June 2009, the Group has performed broadly in line with expectations. While services revenues in the first quarter were lower than anticipated, reflecting the later closure of new orders in 2008, services income returned to satisfactory levels in the second quarter. The Group's manufacturing software division is trading robustly and average order values in the first six months were significantly higher than the comparable period last year. The new business pipeline for the retail software solutions division remains encouraging but extended buying cycles continue to be a challenge.
The business remains strongly cash generative, enabling the further reduction of net debt, which is expected to close the year at under £9m (31 December 2008: £13m), and a high proportion of the Group's annual income is underpinned by recurring revenues from software licence fee renewals and software support.
Given K3's dominant presence in its core markets, the Directors view the Group's long term growth prospects very positively and, in addition, are continuing to seek complementary acquisitions in line with strategy.
The Group's half year results will be announced in early September.
Enquiries:
| K3 Business Technology Group plc | Andy Makeham, Chief Executive | T: 01282 864111 |
| David Bolton, Chief Finance Officer | ||
| Daniel Stewart (NOMAD) | Paul Shackleton | T: 020 7776 6550 |
| Biddicks | Katie Tzouliadis | T: 020 7448 1000 |
K3 Business Technology Group (KBT)