Software group K3 reported a small loss than last year, calling the results “encouraging” after seeing the benefits of a restructuring programme.

Losses before tax fell to £1 million for the six months to the 31st May, down from £5.4 million the same period a year ago. Revenue rose 2.6 percent to £41.4 million, with £18.7 million recurring, and adjusted profits from operations swung to a £1.7 million profit compared with a loss of £3.1m the same period a year ago.

The group said the results were largely due to their recent restructuring programme, which has led to a more “streamlined and integrated” business and had refocused growth.

Gross profit rose 14.3 percent to £21.6 million, up from £18.9 million, with software licenses and streamlined operations contributing heavily. Their gross margin improved to 52.2 percent from 46.8 percent.

“The second half is our stronger earnings period, reflecting the volume of software licence and support renewals in the final quarter of the financial year.

“It has started very encouragingly, with a healthy pipeline in place, and this, together with expected high renewals, gives us confidence that the Group will make further progress over the remainder of the year,” said Adalsteinn Valdimarsson, Chief Executive Officer of K3.