Bits and Splits - stock.adobe.co
The last couple of years have been ones of transformation at K3 and those efforts appear to be delivering the desired outcome with the firm reporting a modest profit for its last fiscal year.
The firm has been going through a review of the Group's resources with the idea of focusing the growth strategy around the cash generating business units and its large SME customer base.
For the fiscal year ended November the business generated a pre-tax profit of £0.02m, which was compared with a loss of £16.1m for the 17 months through November 2017. Revenue fell to £28.36m compared to £118.2m reported in the last numbers.
Adalsteinn Valdimarsson, CEO of K3, highlighted the extensive changes that the firm had made as one of the factors behind its move back into the black.
"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," he said.
The firm has launched its own K3 I Imagine platform in the last few months offering a warehouse management product with early sales being described as "encouraging".
Valdimarsson said it was important that the ERP software services specialist could offer its own intellectual property around cloud-based modular technologies.
"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," he said.
"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," he added.