Half Year Trading Update

KRM22 PLC

20 July 2023

 

KRM22 plc

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

Half Year Trading Update

KRM22 plc, (AIM: KRM) the technology and software investment company with a particular focus on risk management in capital markets, today issues the following trading update for the six months ended 30 June 2023 (the "Period").

The Company has continued to make good progress in the Period, strengthening the quality of its Annual Recurring Revenue ("ARR"), and as at the date of this announcement, the Company's ARR exceeded £5.0m for the first time since its IPO in 2018.

KRM22 now has ARR contracts in place for its Limits Manager product with four of the top 10 Futures Commission Merchants ("FCMs"), three contracts came through direct sales and one contract through the distribution agreement with Trading Technologies International, Inc. ("TT").  The Company has additional Limits Manager and Risk sales opportunities, both direct and through the TT distribution agreement, that are at an advanced contract negotiation stage and which, when signed, will result in two further top tier FCMs using the Limits Manager product. 

Limits Manager is just one of five key sales initiatives the Company is pursuing to achieve its goals and the Company expects similar success in each of the other four initiatives to further drive ARR and revenue growth on its path to profitability.

The Company expects to report results for the Period in September 2023, and these are estimated to be:

·          ARR: £5.0m (H1 2022: £4.1m)

·          Total revenue: £2.4m (H1 2022: £1.9m)

·          Cash balance as at 30 June 2023: £1.4m (FY 2022: £1.9m)

·          Net debt at 30 June 2023: £2.1m (FY 2022: £1.1m)

Stephen Casner, CEO of KRM22, commented: "The Company achieving ARR of £5.0m is a significant milestone on our journey to create a £10m ARR, cash generative and profitable business. The adoption of our Limits Manager product by top tier banks and FCMs demonstrates that our integrated approach to help our customers create alpha through better risk management is exactly what our industry is demanding."

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

For further information please contact:

KRM22 plc                                                                      [e-mail]

Keith Todd CBE, Executive Chairman

Stephen Casner, CEO

Kim Suter, CFO

finnCap Ltd (Nominated Adviser and Broker)                [phone]

Carl Holmes / George Dollemore

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' trading and corporate risk challenges and to manage their entire enterprise risk profile.

Capital markets companies' partner with KRM22 to optimise 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 www.krm22.com

 

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