Trading Update

KRM22 PLC

22 January 2025

 

KRM22 plc

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

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 12 month period ended 31 December 2024 ("FY2024") with total revenue, Annual Recurring Revenue ("ARR") and adjusted EBITDA all slightly ahead of management's expectations.

The Company expects to report audited results for FY2024 in May 2025, and is pleased to report the following financial highlights*:

·      ARR at 31 December 2024 of £6.6m (FY2023: £5.4m) - growth of 22.2%

o  New contracted ARR in the year of £1.7m (FY2023: £1.1m)

o  £1.2m of new contracted ARR generated from direct sales and £0.5m through the relationship with Trading Technologies International, Inc,

·      Total revenue recognised of approximately £6.7m (FY2023: £5.3m) - growth of 26.4%

·      Adjusted EBITDA: £0.9m (FY2023: loss of £1.4m)

·      Gross cash as of 31 December 2024 of £1.0m (FY2023: £0.9m)

·      Net debt at 31 December 2024 of £3.5m with the Company having drawn down a total of £4.5m on the debt facility with £0.5m remaining undrawn.

The Company has continued to execute on its plan to increase its ARR, delivering £6.6m ARR at FY2024, a net increase of £1.2m from £5.4m at the end of FY2023 and, as at the date of this announcement, the Company's ARR has further increased to £6.8m (£6.7m at FY2024 constant FX rates), with uplifts in contractual ARR from existing customers. The Company now has 44 institutional customers using its applications, of which seven customers have contracts in place for multiple applications.

The cost savings plan announced in the February 2024 trading update, with annual cost savings of approximately £1.2m, together with management continuing to tightly manage the cost base of the business and some additional non-recurring revenue has contributed to the Company reporting an adjusted EBITDA profit for FY2024 of £0.9m. 

The growth in ARR, continued management of the underlying cost base of the business and the Company's cash balance of £1.0m, together with the availability of £0.5m, which remains undrawn, under the TT convertible loan, means that the Company expects to continue to operate within its existing cash and debt facilities. 

Dan Carter, CEO commented: "The continued growth in ARR to £6.6m, surpassing management's expectations of 20% year on year growth, underscores KRM22's progress towards becoming a £10.0m ARR and cash profitable business. The sales pipeline of new opportunities remains strong, and we look forward to converting these opportunities in line with our expectations for 2025."

*The financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.

For further information please contact:

KRM22 plc                                                                                          Garry Jones, Chairman Dan Carter, CEO Kim Suter, CFO	[e-mail]
Cavendish Capital Markets Limited (Nominated Adviser and Sole Broker)                        Carl Holmes / Isaac Hooper / Rory Sale (Corporate Finance) Sunila de Silva (ECM)	[phone]

The information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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 KRM22.com

 

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