StockMarketWire.com - K3 Business Technology Group expects results for the 17 month period to the end of November to be in line with management forecasts.

The board confirmed that trading over the remainder of the period to 30 Nov had been in line expectations and new customers signed since the end of June included Barratts, Eton Shirts, Lifestyle Sports and Littlewoods, and there was encouraging growth in the global accounts division.

The group also said the board had completed its operational resource review.

It said: 'The key outcome of this review is the integration of the Microsoft Dynamics businesses (AX, NAV and CRM) into a single unit to create a unified operation, with enhanced and streamlined customer delivery capability.

'This integration, together with a review of K3's IP development strategy, will result in additional reorganisation costs in FY2018 and a non-cash write-down relating to deferred capitalised development costs of up to £2.5m.'

Other changes resulting from the review include: the integration of software product development and own IP management functions into a single Group-level IP unit; the creation of a single unit focusing on driving sales and support of K3's own Software-as-a-Service offering; and an increased focus on strategic co-operation with global System Integrators in the Enterprise market for delivery services and support, with K3 providing IP and industry expertise.

It said these changes would support the board's plans to increase own IP sales and drive recurring revenues.

It said the board anticipated some associated cost savings as a result of the streamlining of certain operations but, given its ongoing investment plans for its own IP and sales, it did not anticipate a net reduction in the group's cost base beyond what has been previously communicated.


At 9:32am: [LON:KBT] K3 Business Technology Group PLC share price was 0p at 165.5p



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