K3 has warned that its earnings will be “significantly” below market expectations after seeing major client deals fall through.
In a trading update, K3 said that its second half had “started confidently”, but a major new contract then failed to materialise and a “large customer” entered administration. Clients are buying software at a slower pace than anticipated.
“Notwithstanding the reduced financial performance expected this year, the company has continued to make encouraging strategic and operational progress”, K3 announced.
K3 said it expects adjusted operating profit to be around £1.5 million for the year, compared to £4.6 million in the previous year.
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, the outfit said.
“This strong validation stands K3 in very good stead in its markets and the pipeline for this product remains strong and high quality.”
