The Board's longer term objective is to implement a strategy which establishes K3 as one of Europe's leading suppliers of Microsoft based supply chain management systems, with a particular emphasis on the growth markets of "hosted applications" and "cloud computing". 

Nearer term, the Board's key objectives are:

• to achieve growth in our target markets;
• to create shareholder value through increases in adjusted earnings per share;
• to grow recurring income levels; and
• to achieve progressive increases in the dividend.

Our businesses are focused on the supply of enterprise resource planning ("ERP") systems and associated products to the Retail, Manufacturing and Distribution markets. Our approach is to maintain a balanced business model whereby our Manufacturing Software operations provide us with highly visible, recurring income, profits and cash flow while the Retail Software and Distribution software markets offer us higher growth opportunities, whilst also building recurring income. 

We see strong growth opportunities in the area of "hosted applications" and "cloud computing" within our core supply chain markets, and we propose to drive growth with these emerging technologies.
There are some 9,000 Small and Medium-sized Enterprises ("SME") manufacturers we target with SYSPRO (in discrete manufacturing) and 5,000 SME process manufacturers we target with AX. We have approximately 10% of the SME manufacturing market, and we are the leading player in the UK retail software market.