'Record' software licence sales help K3's revenues soar

The firm's revenues jump 16 per cent to £83.43m

Retail specialist K3 Business Technology Group has seen its revenues jump thanks to record sales in software licences.

For the 12 months to 30 June 2015, the software vendor's adjusted profit from operations was at £8.15m, up 12 per cent, following "significant investment", and a "weak Dutch market, now addressed".

This was on sales over the same period of £83.43m, up 16 per cent. These revenues were boosted by software licence sales increasing by seven per cent, at £13.83m, and services revenue increasing by 25 per cent at £24.85m.

Speaking about the results, Lars-Olof Norell, chairman of K3, said: "The growth of the business has been excellent, reflecting progress with both our new and existing product offerings. Record software licence sales over the last two years were the key driver to the 16 per cent rise in group revenues."

Norell also said the company is growing its channel, and this will help the firm expand next year.

"We have continued to expand our channel partner network," he said. "This route to market for our products represents a significant opportunity and a strong pipeline is building with channel partners in addition to our own direct business.

"Growth prospects for our business look good for the new financial year. There are strong growth drivers, including channel partner sales and hosting."

In the results, Norell also noted the company's transition into a software vendor is "progressing well".

Along with its results, K3 announced "a major contract win" with European fashion retailer TriStyle today.

The deal – details of which K3 did not disclose – will see the implementation of the vendor's "ax l is fashion" software solution, which is specifically designed for fashion retailers, according to K3.

"The contract represents the largest order secured to date through K3's channel partner network and is K3's first win in Germany, the largest market for fashion in Europe.

"The expansion of K3's third-party sales network has a key focus for the company over the last 12 to 18 months and remains a significant component of K3's growth strategy alongside its own direct sales," according to a company statement.