In-line H1 trading update underpins estimates
K3‘s trading update for the first half (six months to the end of December 2013) of its current financial year notes that trading is in line with management’s expectations. It highlights the improvement in performance of the Microsoft UK Division and the successful launch of its new “ax|is fashion” solution with an enhanced version on track for release in mid-2014. The new solution is already seeing encouraging demand and the update notes order wins in the last few months. The announcement says that the Microsoft UK Division’s progress, in conjunction with an improving performance in the Managed Services Division, will ‘help to underpin forecast results for the full financial year’. We make no changes to estimates at this stage.