LONDON (ShareCast) - (Sharecast News) - K3 Business Technology on Tuesday cautioned that its full-year results will fall below market expectations after issues with a major contract and on the back of slower purchases by existing customers.
The business software and cloud solutions provider said the major new contract had been in the final stages of agreement before being put on hold by the counterparty, while another large customer has entered administration.

Consequently, the AIM traded company said it now expected to achieve full-year adjusted operating profit of approximately £1.5m, while its net debt position at year-end was anticipated to reach £2.2m.

That compared with adjusted operating profit of £4.6m for the year ended 30 November 2018 and a net debt position of £0.6m at the end of the period.

However, a final dividend for the year was anticipated to be in line with prior expectations.

Despite the cut to its full-year guidance, the company said it had continued to make encouraging strategic and operational progress.

"In the second half, K3 was included in Microsoft's top 20 independent software vendors globally, with 'K3 I fashion' selected as Microsoft's recommended solution for the fashion vertical. This strong validation stands K3 in very good stead in its markets and the pipeline for this product remains strong and high quality," said K3.

K3 Business Technology shares were down 1.42% at 208.00p at 1231 BST.

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