K3 Business Technology: Revenue slides after ‘sharply lower levels’ of activity

K3 Business Technology Group,  a provider of software solutions focused on fashion and apparel brands, has seen its revenue slide after a “sharply lower levels” of activity within its Global Accounts operation. 

The London-listed firm, which is headquartered in Salford, reduced its revenue to £15.5m in the six months ending May 31, 2024, down from £20.3m in the same period the year before.

The reported loss before tax from continuing operations was £2.8m compared to £2.9 in the year before. This was after net finance expenses of £0.2m during the six months

K3 also announced a new non-executive chairman, Oliver Scott, with Tom Crawford, previously executive Chairman, remaining as a non-executive director.

Scott joined the company’s board in February 2020 when he was appointed as a non-executive director and a representative of Kestrel Partners LLP, the specialist software investor and major shareholder in the company. 

Eric Dodd, CEO of K3 Business Technology Group, said: “Interim results mainly reflect the anticipated reduction in activity at Global Accounts.

“This has been managed as effectively as possible and, despite the unit’s performance, the group’s gross profit margin has been improved, cash generation increased, and the overall loss reduced.

“Net cash at the half-year end remained very healthy.  

“The second half of the financial year is typically our stronger half, with significant cash inflows from software licence and maintenance and support contract renewals.

” Our priority is to deliver shareholder value while maintaining strong financial discipline. The group remains on track to perform in line with our expectations for the current financial year.”

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