- K3 Business Technology Group posts adjusted pre-tax profits of £8.80m for the 12 months to the end of June - 22% up on last time.

Revenue rose by 7% to £89.18m with recurring revenues up 4% at £41.62m.

Gross margins increased to 54.4% from 51.5% and new orders hit a record high of £35.3m, up 66%.

The group said the results were broadly in line with market expectations despite a significant customer, My Local, entering administration at the end of the period.

Chairman Lars-Olof Norell said: "The growth of the business has been encouraging with record levels of software licence sales and adjusted earnings per share up 21% to 23.5p. The Group's recurring income also increased and now stands at almost half of total revenues.

"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.

"The acquisitions, of DdD Retail and Merac Limited, provide us with further excellent product sets to add to the K3 product portfolio.

"Prospects for our business in the new financial year remain very encouraging. There are strong growth drivers, including channel partner sales and hosting. This, combined with further initiatives to improve margins and costs, leaves the Group well-positioned to increase profits and improve cash flows."

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