Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Resource planning software company K3 Business Technology reported wider first-half losses amid lower margins and revenue that was held back by pandemic pressures.
For the six months ended 31 May 2021, pre-tax losses widened to £4.3 million from £1.4 million year-on-year as revenue was flat at £23.2 million.
'The decrease in recurring revenue between the two periods mainly reflected pandemic pressures on certain customer segments, including visitor attraction and smaller retailers and distributors,' the company said.
Gross margin fell to 56.2% from 60.4%, mainly reflecting 'the effect of the coronavirus crisis on third-party products' customer base, which includes smaller retailers and distributors,' it added,
'Half year results are in line with management expectations. The Group delivered a resilient performance despite certain parts of the customer base being significantly disrupted by the pandemic,' the company said.
'We are currently in the process of resetting our growth strategies for key strategic products and will be adding selectively to our existing strong teams to ensure that we have the appropriate blend of talents to support our growth plans.'