StockMarketWire.com - K3 Business Technology Group's revenues rose by 16% to £83.43m in the year to the end of June with recurring revenues up 13% at £39.85m.

Adjusted pre-tax profits increased by 9% to £7.22m and the dividend of 1.50p per share is up 20%.

Chairman Lars-Olof Norell said: "The growth of the business has been excellent, reflecting progress with both our new and existing product offerings. Record software licence sales over the last two years were the key driver to the 16% rise in Group revenues to £83.43m. Adjusted profit from operations increased by 12% to £8.15m following significant investment in the business, adverse currency impact and the weak Dutch market, where we have now resized the business.

"We are pleased with the progress we are making in transitioning K3 into a software vendor with product suites that contain increasing levels of our own intellectual property. Microsoft's recognition of K3 as an 'Inner Circle' member, one of a small elite of preferred partners globally, directly reflects its support for our development work with our Microsoft Dynamics offerings. We expect our enhanced relationship with Microsoft to help to open up further opportunities for us.

"We have continued to expand our channel partner network. This route to market for our products represents a significant opportunity and a strong pipeline is building with channel partners in addition to our own direct business.

"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." Separately, K3 announced a major contract win for its 'ax l is fashion' solution with TriStyle Mode, a leading European mail order fashion retailer.

The order has been secured through K3's channel partner in Germany and, significantly, it is K3's first order though a global systems integrator.

The value of the software licence sale to K3 is not being disclosed for commercial reasons. The win is expected to generate ongoing revenues for K3 through licence support.




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