K3 Business Technology, the AIM-listed business software firm, hailed a 'significant turnaround in performance' in the first half, as results were helped by the first sales of its new Microsoft Dynamics AX solution and an improvement in retail sentiment.

Adjusted pre-tax profits totalled £3.16m in the six months to December 31st, up 26% on the previous year, on revenue that rose 9% to £34.47m.

Having secured a number of pilot orders for the AX product at the end of the last financial year, K3 signed four major orders worth a combined £8.3m in the period, helping the total Microsoft division grow revenues by 18% to £16.42m.

The SYSPRO and Sage division saw sales edge 3% lower to £14.12m, while Managed Services revenues rose 15% to £3.93m.

"The most important feature of these results is the early success we can now demonstrate with our new 'axHTMLPIPESYMBOLis' solution, which has been under development over the last 18 months," said Chairman Tom Milne.

"Sentiment in the retail sector is improving and we are encouraged both by the new orders we closed and by the level of interest in our solution."

Milne said that axHTMLPIPESYMBOLis solutions have the potential to be a "significant growth driver" in the future.

The stock was up 2.8% at 186p in early trading on Monday.

BC

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