K3 Business Technology posts jump in profit, announces contract win

15th Sep 2015 09:49

(ShareCast News) - K3 Business Technology posted a 9% rise in pre-tax profit for the year to the end of June and announced a major contract win with a European mail order fashion retailer.The company, which provides and supports software, hosting and managed services to the retail, manufacturing and distribution sectors, said the order has been secured through its channel partner in Germany with TriStyle Mode GmbH.K3 did not disclose any financial details but said the deal is expected to generate ongoing revenues for K3 through licence support.The company said adjusted pre-tax profit came in at £7.22m from £.6.60m last year on revenue of £83.43m, up 16%.Software licence sales were up 7% to £13.83m, while services revenue grew 25% to £24.85m and recurring revenues were 13% higher at £39.85m.Chairman Lars-Olof Norell said: "The growth of the business has been excellent, reflecting progress with both our new and existing product offerings."Growth prospects for our business look good for the new financial year. There are strong growth drivers, including channel partner sales and hosting. This, combined with our initiatives to improve margins and costs, leaves the group well positioned to drive further increases in profit and strong cash flows."At 0956 BST, K3 shares were up 2.7% at 285p.