K3 Business Technology revenues to be weighted towards second half

Mission‐critical business software provider K3 Business Technology warned investors on Tuesday that revenues looked set to be more second-half weighted than usual as a result of several Brexit-related disruptions.

K3 said the process of Britain's long and arduous exit from the EU had delayed decision-making process among many of its customers, which had consequently hindered its services activity in the first half and pushed potential earnings into the second half.

However, despite the delayed revenues, K3 assured it was still on track to match current market expectations for the full year after closing a number of major deals at the end of its first half, providing it with a "very healthy" looking pipeline.

K3 also noted that its focus on cash generation had continued, with net debt in the six months ended 31 May falling 32% year-on-year to £5.8m - a trend it expects to continue.

As of 1005 BST, K3 shares had slipped 2.73% to 214p.