Half Year Trading Update

RNS Number : 1574F

KRM22 PLC

11 July 2019

 

KRM22 plc

("KRM22" or the "Company")

Half Year Trading Update

KRM22 plc, (AIM: KRM) the technology and software investment company that focuses on risk management for capital markets, today issues the following trading update for the 6 months to 30 June 2019.

Key points:

·    ARR increased to £4.1 million, a £0.8 million increase since year end 2018

·    Global Risk Platform and Enterprise Risk Cockpit launched

·    Acquisition of Object+ to provide a suite of "pre-trade" and "at trade" market risk applications

·    3 key partnerships signed to support the FCA's Senior Managers and Certification Regime ("SM&CR")

·    37 customers increased from 26 at year end 2018

The Company continues to perform in line with management expectations with Annual Recurring Revenue increasing to £4.1 million, an increase of £0.8 million (24%) since year end 2018. £0.5 million of this increase was achieved through the acquisition of Object+ in late May 2019, with the remaining £0.3 million of organic growth generated through new customer agreements. The sales pipeline is strong with contracts in negotiation and several proposals under active negotiation. The sales pipeline has been continuously building through the first half of the year as we released new offerings and submitted proposals. The second half of the year was always expected to be significantly bigger as we move forward into KRM22's second year of operation.

The Company was pleased that both the Global Risk Platform and the Enterprise Risk Cockpit launched in March 2019. In May, the Company announced the acquisition of Object+, a market risk management services technology business. In addition to this progress, the Company has signed partnership agreements with the Market Abuse Centre, Trailight and Neotas to support the FCA's SM&CR extension and bring further complimentary capabilities to the Global Risk Platform.

The Company continues to operate tight control of the cost base, both within current financial facilities and projected cashflows, which benefit from favourable commercial terms on new contract signings. Cash as at 30 June 2019 was £1.4m and term debt was £2.1m, which includes the initial drawdown from the Harbert facility signed in April 2019 and third-party shareholder loans provided to Irisium in 2018, not payable until 2023.

Keith Todd, Chairman and CEO at KRM22, commented: "I am proud of the progress we have already made, and the momentum with which we are entering the second half of the year. Our priority for H2 is to drive recurring revenue growth through our strong sales pipeline of cross-selling opportunities and by attracting new customers. We will continue to bring further applications to the Global Risk Platform through investments, acquisitions and partnerships. Our discussions with potential strategic industry investors continue which we aim to conclude in the second half of year."

For further information please contact:

KRM22 plc                                                                                                         [e-mail]

Keith Todd CBE, Executive Chairman and CEO

Kim Suter, CFO

finnCap Ltd (Nominated Adviser and Sole Broker)                                                      [phone]

Carl Holmes / Kate Bannatyne / Matthew Radley

About KRM22 plc

KRM22 is a closed-ended investment company which listed on AIM on 30 April 2018. The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets.

Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management. The Global Risk Platform provides applications to help address firms' regulatory, market, technology and operations risk challenges and to manage their entire enterprise risk profile.

Capital markets companies' partner with KRM22 to optimize risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha.

KRM22 PLC is listed on AIM and the Group is headquartered in London, with offices in several of the world's major financial centres.

See more about KRM22 at KRM22.com.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

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