- K3 Business Technology Group posts adjusted pre-tax profits of GBP4.72m for the six months to the end of December - 33% up on last time (36% up at constant currencies).

The group said the results were in line with management expectations and benefited from a strong performance from retail activities, an increase in own IP and cloud hosting revenues as well as efficiency initiatives.

Reported PBT rose 27% to £2.28m (2014: £1.79m) and revenues were up 1% to £42.29m (up 4% with constant currency) (2014: £41.67m). Recurring revenue margin up to 70% (2014: 64%) and account for c.47% of total.

Chairman Lars-Olof Norell said: "We are encouraged by these results, which show a significant increase in profits, driven by a strong performance from our retail activities, own IP sales and cloud hosting as well as cost reduction initiatives. "A key part of our growth plans for K3 is to drive sales of our own IP software products, particularly our retail product on Microsoft Dynamics AX. As part of this strategy, we are focused on growing sales through channel partners as well as through our own direct sales teams. We made encouraging progress here in the period and received our first orders through a Global Systems Integrator for our ax I is fashion" product. Microsoft's endorsement of K3 in July 2015 as member of its elite Microsoft Dynamics 'Inner Circle' supports growing channel partner interest in our solutions and we are also engaging with Microsoft on potential opportunities.

"Looking forward, we remain confident about the potential to exploit our own IP and expect to see continuing progress in our growth strategy together with rising channel partner sales and hosting. As we have previously noted, cloud-based subscription models are becoming increasingly important to us as customers move towards consumption-based licensing. This means that whilst income from contracts is recognised over longer periods rather than upfront, the lifetime value has the potential to be significantly higher. "As we seek to further develop the business, we also intend to consider acquisitions which enhance our existing product offering."

At 9:55am: [LON:KBT] K3 Business Technology Group PLC share price was -1p at 351.5p

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