REG - KRM22 PLC - Half Year Trading Update

KRM22Announcement

20/07/2023 07:00

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RNS Number : 5855G  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
                       InvestorRelations@krm22.com

Keith Todd CBE, Executive Chairman

Stephen Casner, CEO

Kim Suter, CFO

 

finnCap Ltd (Nominated Adviser and Broker)                +44
(0)20 7220 0500

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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