The transition continues at K3 Business Technology

K3 Business Technology is a company in transition that follows a clear strategy to focus on its core retail customers and get their finances in order.

Under the leadership of CEO Marco Vergani, who joined in March last year, this K3 transition has accelerated, with divestments of non-core businesses and renewed vigor around K3’s own resource planning solution. company (ERP) of the company.

Evidence of progress can be seen in the interim results which show that the first half (H1), for the six months to May 31, is in line with management’s expectations. These expectations include a slight decline in revenue to £19.9m from £20.9m in 2021, and a widening of pre-tax losses from £2.5m to £2.8m. .

In the first half, the company acquired sustainability-focused software developer ViJi, giving it the ability to help retailers achieve supply chain transparency.

Investments were also made in upgrading the computer system, and the company began to intensify its efforts to develop its partner network and its distribution activities in the United States.

“We are executing the new growth strategy we established in the fourth quarter of last year and have made encouraging progress in the first half. [of 2022]”, said Vergani.

“K3 products present clear growth opportunities in its fashion and apparel markets, and we are focused on three critical areas for customers: sustainability, omnichannel and business insights. The acquisition of sustainability-focused software developer ViJi during the period will enhance our offering here.

“Third-party solutions have performed well and remain an important source of cash. We invest in product and delivery resources to support growth.

When he spoke with MicroScope in May, Vegani said the company’s three-pronged approach was one that would put it in the best position to meet the needs of retailers.

He added that the company was in a strong position when it came to retail and just needed to refine that focus to increase its success levels.

Interim first half figures echo this assertion, with the business increasing its margin and the shift to more strategic products seeing annualized sales increase by 12% in this area. The company continues to see a decline in its older point-of-sale products. All of this gave Vergani the confidence to strike a positive tone with investors as he considered the company’s second half outlook.

“The second half of the year is generally stronger than the first, with substantial cash inflows due to the renewal of software licenses and support and maintenance contracts. Although macroeconomic uncertainties are increasing, we remain confident in our long-term strategic direction and will continue to focus on growth, cash and costs,” he said.

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