K3 Business Technology Group PLC on Tuesday said it signed a three-year software licence contract for its flagship fashion product K3 fashion for a gross value of €1.6 million.

Shares in K3 were up 7.6% to 121.00 pence each in London on Tuesday morning.

The Manchester, England-based business-critical software solutions provider focusing on fashion and apparel brands said the deal represented its largest software licence contract ever and was agreed with an unnamed global luxury apparel group.

It said the luxury retailer was first secured as a new customer in January 2022 via K3’s channel partner network, when the customer bought software licences valued at €30,000 over a 12-month contract covering the piloting of the product.

As a result of the successful pilot, K3 said the software contract has been expanded substantially, significantly increasing the total value of annualised recurring contracts for its strategic products.

K3 fashion is an enterprise solution, based on Microsoft Dynamics 365 and specifically developed for the fashion and apparel markets, K3 said in a statement, adding that it was endorsed by Microsoft as its globally recommended ‘add-on’ for the fashion sector.

K3 said it is typically bought as a cloud-based software-as-a-service solution, enabling customers to ‘manage more effectively all processes connected to product design, manufacturing, supply and returns’.

Its modules also address customers’ sustainability issues, including supply chain traceability, alongside enabling ‘seamless engagement’ with end-customers across all sales channels, K3 said.

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