K3 provided earnings guidance for the financial year ending 30 June 2014. Trading in the second half of the financial year across the group has been good and, accordingly, the board expects results for the year to be in line with market expectations. Recurring income is expected to show a year-on-year increase and operating cash flows remain robust.

Net debt at 30 June 2014 is anticipated to be £13.6 million (compared to £13.8 million a year ago), reflecting the high levels of trading activity in the final quarter, investment in product development and the costs of the significant changes required to move to a new organizational structure and position the business for the future. The net debt position will reduce in the first half of the new financial year in line with historic patterns of cash flows and improving profitability should lead to a year-on-year reduction in net debt.