London, July 28, 2023 - K3 Business Technology Group, a leading professional-services company, announced that its pretax loss for the first half of fiscal 2023 slightly increased compared to the same period last year. However, the company expects improved earnings in the second half, according to its recent financial report.
For the six months ended May 31, K3 Business Technology Group reported a pretax loss of £2.9 million ($3.7 million), compared to a pretax loss of £2.8 million in the previous year. The company's adjusted operating loss narrowed down to £791,000 from £983,000.
The company witnessed a slight increase in revenue, reaching £20.3 million, up from £19.9 million in the same period last year. This growth was mainly driven by the third-party solutions division. Additionally, K3 Business Technology Group saw an improvement in gross margin, with it reaching 61%, compared to the previous year's 60%.
K3 Business Technology Group stated that their current business performance is in line with management expectations. They also highlighted an encouraging new business pipeline, which is expected to contribute to stronger earnings in the second half of the fiscal year. The company's earnings are traditionally influenced by software license and maintenance and support contract renewals, particularly in their third-party solutions division.
Regarding their K3 Products division, the company expressed its ambitions for growth in annualized recurring revenue at a rate of approximately 30% per annum in FY23. They are particularly targeting the fashion and apparel market and believe that this growth rate can be sustained in the near term.