Business Update

RNS Number : 7090R

KRM22 PLC

31 October 2019

 

KRM22 plc
("KRM22", the "Group" or the "Company")

Business Update

KRM22 plc (AIM: KRM.L), the technology and software investment company, with a particular focus on risk management in capital markets, announces further progress with 3 new customer wins.

The Company is delighted to have signed three new customers, and renegotiated one existing contract, resulting in an increase in ARR to £4.3m at 31 October 2019 (at constant exchange rates), increasing to £4.4m in 2020. This represents year to date organic growth in ARR of c.18 per cent. These new customer contracts form part of the previously announced near term pipeline of opportunities, which the Company is converting.

The first customer, a quantitative investment firm, will use KRM22's market surveillance application, Irisium, to monitor market activity to increase transparency, integrity and confidence in their offering. In a first of its kind, KRM22 will provide Production Services to assist the customer in monitoring daily alerts.

The second customer, a futures brokerage in Singapore, will be the first Asia Pacific customer for KRM22's Risk Monitor application as part of the Global Risk Platform. KRM22 will provide a standardised set of market interfaces for exchanges in Singapore and the region.

The third customer is the first in Australia to use KRM22's Enterprise Risk Cockpit demonstrating the benefit of the global sales presence.

In addition, the Company has taken the strategic decision to reduce the scope of certain activities in 2020 resulting in a commensurate cost reduction of £1.0m. It is not anticipated that this will affect 2020 revenues.

Further to the announcement made on 11 September 2019, the Company is pleased to confirm the receipt of the R&D tax credits of £0.6m which will supplement the funding of the Company in the near term.

Conversations with strategic investors continue to be productive however the Board has decided to defer concluding these discussions until 2020, when the market is expected to be more stable following the anticipated resolution of political uncertainties surrounding Brexit. The consequence of this is also that material acquisition or investment decisions have been put on hold until 2020. The Company will instead focus on driving further organic revenue growth and converting the near-term pipeline of opportunities, as well as carefully monitoring the cash position and the Company is still exploring funding opportunities.

Keith Todd, Executive Chairman and CEO at KRM22, commented: "In the 18 months since we listed, we have built the foundations of a great business and are now seeing the start the contract flow from the extensive sales pipeline we have built and are successfully converting. We now have 15 applications available, addressing enterprise, regulatory, market and operations risk."

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 / Matthew Radley

Alice Lane / Sunila de Silva (ECM)

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.

 

END

 

 

TSTLFFLLIDLIVIA