Salford’s K3 Business Technology Group undergoes ‘significant changes’ to boost profitability

Software company K3 Business Technology Group PLC has taken steps to reposition itself for profitable growth.

The Salford-based company implemented “significant changes” in 2017 according to its CEO, creating a group structure that will allow for more streamlined operations and reduce its cost base.

The changes hit the firm’s earnings for the 17 months to November 30 2017, with books showing a pre-tax loss of £16.14m against revenues of £118.18m.

But K3 said the exceptional reorganisation costs from its review and reorganisation programme will lead to annual cost savings of £5m.

Adalsteinn Valdimarsson, chief exec of K3, explained: “We have implemented significant changes at K3 over the last 18 months, aimed at placing the group on a better footing for long-term revenue and profit growth and improved cash generation.

“The group’s operations are now more streamlined and integrated, and we have refocused our IP development roadmap.”

He continued: “While the process has involved cultural change and substantial one-off costs, we are seeing the benefits come through.

“We have strong offerings in our chosen markets across the supply chain, including our new cloud-native IP. Since the period end, trading has been encouraging, especially for own IP sales. While there is still work to be done, we remain confident about prospects for continuing progress.”

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