In the six months to the end of December pre-tax profits plunged from £3.9m to £185,000. Revenue fell 5% to £31.5m. Its adjusted profit figure, which takes into account amortisation and one-off costs, was £2.9m, down from £6.9m.
AIM-listed K3 supplies and supports Microsoft-based enterprise resource planning (ERP) software - a system that manages everything from stock to till sales.
The company also said its figures had been affected by "project gemstone" - an investment in new retail software built around Microsoft's latest AX technology. It committed £2.1m during the period.
In its figures K3 stressed the "robustness" of its recurring income from software licence renewals and support contracts, which increased by 3% year-on-year to £17.6m. Net debt reduced by 8% to £12.3m.
Source: The Business Desk
