KRM22 success this year driven by five key initiatives

KRM22 plc (LON:KRM), the technology and software investment company, with a particular focus on risk management in capital markets, has announced its unaudited interim results for the six months ended 30 June 2022.

Highlights

Financial

·    Gross cash and cash equivalents at 30 June 2022 of £3.6m (FY 2021: £5.4m)

·    Annualised Recurring Revenue* (“ARR”) of £4.1m at 30 June 2022 (H1 2021: £3.7m)

o  New contracted ARR in the period of £0.7m (H1 2021: £0.3m)

·    Total revenue recognised of £1.9m (H1 2021: £2.2m)

·    Adjusted EBITDA loss** of £0.7m (H1 2021: loss of £0.3m)

·    Loss before tax of £1.2m (H1 2021: loss before tax of £1.7m)

Operational

·   Launch of ‘Limits Manager’, the first joint product with Trading Technologies International, Inc (“TT”) following the distribution agreement signed in December 2021

·    Conversion of sales opportunities generated by the relationship with TT

·    Ten new ARR contracts with six new customers, including a Tier One bank

·    Internal reorganisation of staff to bring clarity to operations and responsibilities

·    Significant reduction in unplanned customer churn with only one institutional customer loss in the period

Post-Period Events

·    Growth in ARR to £4.4m from a further six new contracts

* Annualised Recurring Revenue (ARR) is the value of contracted Software-as-a-Service (SaaS) revenue normalised to a one year period and excludes one time fees

** Adjusted EBITDA is the reported profit/(loss), adjusted for depreciation, amortisation, share-based payment charges and unrealised foreign currency gains/losses and non-recurring exceptional costs including impairment charges, reorganisation costs, gain on extinguishment of debt and acquisition and funding costs, gain/loss on disposal of property, plant and equipment 

Commenting on the results, CEO of KRM22, Stephen Casner, said:

“Our success in the first half of the year has been driven by the five key initiatives that we defined at the start of the year.  These initiatives have seen an increase in ARR, a reduction in the level of customer churn and an improvement in the underlying processes that will support KRM22’s continued growth.

There is no doubt that the Company needs to continue to improve performance to achieve profitability and produce positive cash flow.  We strongly believe that if we continue to repeat the success we demonstrated in H1 2022, we have the right products, distribution, talent and sufficient capital to get there.”

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