- K3 Business Technology swung to a modest profit as the transformation strategy initiated two years ago improved performance.

The company reported a pre-tax profit of £0.02m for the year ended November 2018, compared with a loss of £16.1m for the 17 months through November 2017. Revenue fell to £28.36m in 2018, from the £118.2m reported in the 17 months through November.

The company attributed the move into the black to 'extensive changes' made to the business over the past two years.

Since the year end, the company launched a number of its own IP, 'K3 I Imagine' modules, including a warehouse management product, and described early sales of these new applications as 'encouraging,' with uptake in Asia, Scandinavia and the UK.

'I am pleased to report that K3 has moved from losses into profit at the operating level, with the transformation strategy initiated two years ago now bearing fruit. Its positive effects are also evident in improved cash generation and significantly reduced net debt at the year end,' said Adalsteinn Valdimarsson, Chief Executive Officer of K3.

'A key part of our growth strategy is increasing sales of products that contain our own IP, and the formal launch of the 'K3 I Imagine' platform was a significant milestone in this plan. It has the potential to be a major driver of profits and recurring revenues for the Group.'

'K3 now has a firm platform for ongoing growth and we remain positive about future prospects across the Group. Trading since the end of the financial year has been encouraging, and we expect to see continued momentum over the new financial year.'

At 9:24am: [LON:KBT] K3 Business Technology Group PLC share price was +2p at 224p

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