REG - KRM22 PLC - Interim Results
25/09/2024 07:00
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RNS Number : 5010F KRM22 PLC 25 September 2024
KRM22 plc
("KRM22", the "Group" or the "Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024
KRM22 plc (AIM: KRM.L), the technology and software investment company, with a
particular focus on risk management in capital markets, is pleased to announce
its unaudited interim results for the six months ended 30 June 2024 ("H1 2024"
or the "Period").
Highlights
Financial
· Annualised Recurring Revenue* ("ARR") of £6.0m at 30 June 2024 (H1
2023: £4.9m) - growth of 22.4%
o New contracted ARR in the period of £1.1m (H1 2023: £0.4m)
o Total ARR attributable to the relationship with Trading Technologies
International, Inc. ("TT") of £0.8m (H1 2023: £0.2m)
· Total revenue recognised of £3.3m (H1 2023: £2.4m) - growth of
37.5%
· Adjusted EBITDA profit** of £0.3m (H1 2023: loss of £1.0m)
· Loss before tax of £1.3m (H1 2023: loss before tax of £2.3m)
· Gross cash and cash equivalents at 30 June 2024 of £0.6m (FY 2023:
£0.9m), together with the availability of £0.5m, which remains undrawn,
under the TT convertible loan the Company has available funding of £1.1m
Operational
· Launch of Risk Manager application with first sales of the
application in H1 2024
· Group restructure and rationalisation during the Period to implement
a focused cost savings programme, with annual cost savings of £1.2m
· Board changes announced with the appointment of Dan Carter as CEO and
Garry Jones as Non-Executive Chairman, replacing Stephen Casner and Keith Todd
respectively, with Keith Todd remaining on the Board as Executive Director
Post-Period Events
· Growth in ARR to £6.3m from a further two new contracts, for the
Limits Manager and Risk Manager applications, and a three year renewal of an
existing customer for the Market Surveillance application
* 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 loss for the period, adjusted for recurring
non-monetary costs including depreciation, amortisation, unrealised foreign
exchange loss and share-based payment (credit)/charges and non-recurring
costs, both monetary and non-monetary, including Company reorganisation costs,
former director separation costs, loss on disposal of tangible assets, gain on
extinguishment of debt and acquisition, funding and debt related costs.
Commenting on the results, CEO of KRM22, Dan Carter, said:
"These results, with £1.1m of new ARR and an adjusted EBITDA profit of
£0.3m, demonstrate that KRM22 is firmly on track to achieving our full year
expectations and our journey of creating a cash generative and profitable
business. The growth in ARR, driven primarily by the Risk Manager and Limits
Manager applications, is demonstration that there is demand for our
applications as we look to cement our position as the industry standard. The
pipeline of sales opportunities remains encouraging giving us real excitement
as we look to close out 2024 and move into next year."
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
For further information please contact:
KRM22
plc
InvestorRelations@krm22.com
Garry Jones, Non-Executive Chairman
Dan Carter, CEO
Kim Suter, CFO
Cavendish Capital Markets Limited (Nominated Adviser and
Broker) +44 (0)20 7220 0500
Carl Holmes / Rory Sale
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 (http://www.krm22.com)
CEO'S REPORT
The Company made significant progress in the first half of 2024 with Annual
Recurring Revenue ("ARR") increasing to £6.0m at 30 June 2024, with this
further increasing to £6.3m at the time of writing. The growth in ARR was
driven in the main by £1.1m, and £1.4m as at time of writing, in new
contracted sales, a number that surpasses all of our previous annual new sales
records, a fantastic achievement. Continued investment and development in
our software offering has allowed us to make significant progress with our
overall product strategy. We continue to manage levels of customer churn and
the underlying cost base of the business, all driving towards becoming a cash
flow positive and profitable business and our target of £10.0m ARR being
firmly in our sights.
Revenue growth
KRM22 added £1.1m in new ARR in the Period, with £0.9m from new contracts
and £0.2m from extensions to existing contracts, from both direct sales and
the relationship with Trading Technologies International, Inc. ("TT").
The growth in ARR was primarily driven by sales of the Risk Manager (53%) and
Limits Manager (43%) applications. This growth validates the decision to
rebuild the Pre-Trade, At-Trade and Post-Trade legacy applications, together
with additional Value at Risk ("VaR") functionality, into the new technology
stack offered by the Global Risk Platform. The integration of the Risk
Manager and Limits Manager applications allows firms to gain complete control
of their risk management processes technologically, syncing live risk data
with limits set on the trading applications and exchanges, something that has
never been done before and that we expect will drive further growth in ARR
with existing customers as they adopt both applications from us in the future.
As at the date of this report, we now have three customers using the Risk
Manager application, two using the KRM22 GUI and one using the API service
which delivers risk metrics out for consumption on the client side. In
addition, we have active engagements with our existing At-Trade and Post-Trade
customers to migrate them to the new Risk Manager application. Limits
Manager continues to be the market leader, and we now have nine Futures
Commissions Merchants ("FCMs") using the application.
Our partnership with TT continues to deepen to allow for KRM22's Market
Surveillance human calibrated alert tools to be integrated into TT's own
surveillance product, the integrated offering is now available for TT
customers. The Risk Manager application is expected to be added before the
end of 2024 allowing TT customers to deploy the Risk Manager application
direct on the TT platform. Both the TT Surveillance and Risk Manager
applications are expected to generate new ARR opportunities in 2025. At the
date of this report, the total amount of ARR attributable to the relationship
with TT, is £0.9m.
The delivery of the highest standards of service are critical and the Customer
Services team continues to deliver these high standards to maintain customer
churn at manageable levels. At the start of the 2024, there was £2.9m of
contracted ARR that was subject to renewal over the next 12 months and it was
therefore always going to be a challenge to retain all ARR with no churn.
Whilst it is unfortunate that there have been some unexpected losses in the
Period, with total churn in the Period of £0.4m, and a further £0.1m of
churn that has already been communicated in the second half of 2024, there
remains £0.7m of ARR, of which £0.3m relates to legacy customers on rolling
monthly contracts, that is subject to renewal as we approach the end of 2024.
The value of ARR contracts that are subject to renewal in 2025 is
substantially lower than 2024 so we remain positive that churn will be kept
under control moving forwards.
Company reorganisation
In January 2024 we implemented a focused cost saving program with annual cost
savings of approximately £1.2m to accelerate the Company's path to
profitability. The cost savings were from staff redundancies, spread across
different functions and geographical locations in which KRM22 operates, which
has had minimal impact on operations as the savings were derived from
operational synergies and a reduction in contracted development resource as
specific projects neared their completion.
Products
Having simplified KRM22's product offering in 2023 into two key distinct areas
of risk, Trading Risk and Compliance Risk, we set about investing in the core
functionality within the applications in 2024.
Limits Manager
As Limits Manager moves through its product lifecycle, and its initial growth
phase, the focus has been on delivering key functionality to benefit end users
to provide more efficiencies for firms and their execution services and risk
teams. Enhancements to the client portal, which allow firms to provide
access of the front-end of the application to their end client, were delivered
whilst the ability to enrich the dataset available via the API with external
data has enhanced the power of the audit trail. Automation features that
were added in 2023 have been enhanced in the Period with additional ISV and
exchange integrations, via API and file-based transfers, added to the
application.
Risk Manager
The creation of Risk Manager, bringing real-time P&L, Margin, Stress
scenario analysis and VaR together in one application was completed in 2023
and 2024 has allowed us to focus on core functionality and data processing
within the application, ensuring effective delivery of three customer
deployments. We have also added numerous front-end GUI enhancements, aimed
at ensuring the functional aspects of the legacy At-Trade and Post-Trade
applications are available in the new application. We will continue to
develop the application with a customer-led product roadmap, ensuring that
functions needed by firms risk managers are delivered within the application.
Integration of Limits Manager and Risk Manager
As firms begin to see the power of integrated Limits Manager and Risk Manager
applications, we have continued to enhance and test this feature set
throughout the Period. The integration of both applications allows risk
managers to review key risk metrics from Risk Manager and display it alongside
the limit changes raised by a client within Limits Manager. When the risk
team approves the change, these values will be stored in the audit trail - a
crucial view of what standing the account was in and why the decision was made
at that time which will ultimately provide risk teams with more visibility and
information in real-time when making these key decisions.
Market Surveillance
We continue to enhance the Market Surveillance application with new alerts,
including Spoofing by Order Depth, Cross Trades and Gilt Closing alongside key
functional changes. We now have over 80 alert types available to customers
in the application.
Developing an API, where results from the application can be consumed outside
the KRM22 GUI, was a key area of development that supports our integration
with TT Surveillance, TT's own surveillance application, which is a AI/ML
based model, with KRM22's human calibrated alerting tool, allows compliance
officers to ensure their calibrations are valid. This integrated offering
has been released by TT in the second half of 2024 to market and sell
directly. The project has already generated ARR and non-recurring revenue
for KRM22 and the integrated product will generate further revenue for KRM22,
through a revenue share model, once product sales crystalise for TT.
Outlook
We have continued to make good progress in the year towards our 2024 full year
expectations with ARR now at £6.3m from £5.4m at the start of the year.
The continued adoption of Limits Manager and Risk Manager demonstrates that
there is clear demand and appetite for these applications, both individually
and as integrated applications. We are seeing an increased level of demand
with firms that previously had no desire to change systems, namely during and
immediately after the coronavirus pandemic, starting to look at newer
technologies and where they can help. This is encouraging for us as we
progress through the remainder of 2024 and move into 2025.
Our progress keeps us firmly on track towards becoming a £10.0m ARR business
generating positive EBITDA and cashflows. The pipeline of sales
opportunities remains strong and the reorganisation of our workforce in early
2024 has been successfully implemented, without any adverse impact to service
levels, as we manage the cost base of the business and move towards positive
cashflows.
Dan Carter
CEO
24 September 2024
FINANCIAL REVIEW
Income statement
Total revenue
Total revenue reported in the period was £3.3m (H1 2023: £2.4m), an increase
of 37.5% compared with the prior period, with 89.1% (H1 2023: 93.7%) generated
from recurring customer contracts. Non-recurring revenue for the period was
£0.4m (H1 2023: £0.2m) and related principally to customer implementations,
proof of concept work and development services.
Recurring revenue
As at 30 June 2024, the Group had contracted Annualised Recurring Revenue
("ARR") of £6.0m (H1 2023: £4.9m), with new contracted ARR in the period of
£1.1m (H1 2023: £0.4m) and churn of £0.4m (H1 2023: £0.1m). As at the
date of this report, contracted ARR has further increased to £6.3m.
Gross profit
Gross profit for the period was £2.7m (H1 2023: £1.8m) with gross profit
margin for the period of 81.8% (H1 2023: 75.5%). The increase in gross
profit margin was driven by the increased amount of non-recurring revenue
recognised in the Period.
Adjusted EBITDA
Adjusted EBITDA is a key metric to consider in order to understand the
cash-profitability of the business due in particular to the non-cash items
that impact the Income Statement under IFRS accounting, such as non-cash
share-based costs.
Adjusted EBITDA for the period was a profit of £0.3m (H1 2023: loss of
£1.0m) and a reconciliation of adjusted EBITDA profit to operating loss is
detailed below.
H1 2024 H1 2023
£'m £'m
Adjusted EBITDA profit/(loss) 0.3 (1.0)
Depreciation and amortisation (0.8) (0.8)
Unrealised foreign exchange loss - (0.5)
Gain on extinguishment of debt - 0.1
Share-based payment credit/(expense) 0.1 -
Reorganisation costs (0.6) -
Operating loss (1.0) (2.2)
Loss for the period
Reported operating loss for the period was £1.0m (H1 2023: loss of £2.2m)
and included one off costs of £0.6m relating to reorganisation costs covering
redundancy and separation costs associated with the cost savings programme
implemented in January 2024 and separation costs associated with Executive
changes announced in March 2024.
Finance charges
The net finance expense for the period was £0.3m (H1 2023: £0.2m)
principally related to loan interest (H1 2023: loan interest of £0.1m and
IFRS16 lease liability interest of £ 0.1m)
Financial position
Assets
The cash balance at 30 June 2024 was £0.6m (31 December 2023: £0.9m).
The Company's cash balance of £0.6m, together with the availability
of £0.5m, which remains undrawn, under the TT convertible loan provides
Company with available funds of £1.1m.
Current assets at 30 June 2024 include trade and other receivables of £1.2m
(31 December 2023: £1.1m).
Liabilities
As at 30 June 2024, our principal liabilities were:
· £4.5m convertible loan (the "TT Convertible Loan") owed to TT plus
accrued interest of £0.5m. £0.5m of the TT Convertible Loan remains
undrawn but available.
· £0.6m (US$0.8m) deferred consideration for earn out payments for the
acquisition of Object+. The liability can be satisfied in either cash or
Company ordinary shares at the Company's discretion.
· £0.3m for the right of use assets relating to all future payments of
leased-office rentals under IFRS16 'Leases' whereby such lease payments are
provided for at today's value. At 30 June 2024, KRM22 had one remaining
lease in London which expired in August 2024 and the liability of £0.3m is
associated with a lease that expired in 2022.
· £2.8m of deferred revenue; contracted and paid services that will be
released within one year.
Principal risks and uncertainties
The principal risks and uncertainties facing the Group remain broadly
consistent with the Principal Risks and Uncertainties reported in the Group's
31 December 2023 Annual Report and continue to be carefully monitored by the
Board.
Kim Suter
CFO
24 September 2024
Consolidated income statement and statement of comprehensive income
for the six months ended 30 June 2024
Note 6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
Revenue 4 3,293 2,402
Cost of sales (574) (588)
Gross profit 2,719 1,814
Other income 73 69
Administrative expenses (3,794) (4,047)
Operating profit/(loss) before interest, taxation, depreciation, amortisation,
share based payment and exceptional items ("Adjusted EBITDA")
333 (983)
Depreciation and amortisation (836) (790)
Debt related expenses - (2)
Loss on disposal of tangible assets - (1)
Unrealised foreign exchange loss (8) (477)
Gain on extinguishment of debt - 127
Share-based payment credit/(expense) 92 (38)
Reorganisation costs (583) -
Operating loss (1,002) (2,164)
Net finance charge (262) (155)
Loss before taxation (1,264) (2,319)
Taxation credit 40 68
Loss for the period (1,224) (2,251)
Loss for the period attributable to:
Equity shareholders of the parent (1,224) (2,251)
(1,224) (2,251)
Other comprehensive income
Item that may be reclassified subsequently to profit and loss
Exchange gain on translating foreign operations 12 329
Total comprehensive loss for the period (1,212) (1,922)
Total comprehensive loss for the period attributable to:
Equity shareholders of the parent (1,212) (1,922)
(1,212) (1,922)
Loss per ordinary share
Basic and diluted earnings per share 5 (3.4p) (6.3p)
All amounts relate to continuing activities.
Interim consolidated statement of financial position
at 30 June 2024
30 June 31 December
2024 2023
(unaudited) (audited)
£'000 £'000
Assets
Non-current assets
Goodwill 3,497 3,516
Other intangible assets 2,156 2,105
Property, plant and equipment 13 21
Right of use assets 19 136
5,685 5,778
Current assets
Trade and other receivables 1,232 1,142
Cash and cash equivalents 629 886
1,861 2,028
Total assets 7,546 7,806
Current liabilities
Trade and other payables 4,781 3,900
Lease liabilities 285 369
Loans and borrowings 552 391
Derivative financial liability 196 196
5,814 4.856
Net current liabilities (3,953) (2,828)
Non-current liabilities
Loans and borrowings 3,988 3,887
Deferred tax liability 30 164
4,018 4,051
Total liabilities 9,832 8,907
Net Assets (2,286) (1,101)
Equity
Share capital 3,581 3,567
Share premium reserve 20,622 20,517
Merger reserve (190) (190)
Convertible debt reserve 327 327
Foreign exchange reserve (102) (114)
Share-based payment reserve 2,853 2,945
Retained losses (29,377) (28,153)
Total equity (2,286) (1,101)
Interim consolidated statement of cash flows
for the six months ended 30 June 2024
6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
Cash flows from operating activities
Loss for the period (1,224) (2,251)
Adjustments for:
Tax credit (40) (68)
Net finance expense 262 155
Depreciation and amortisation 836 790
Loss on disposal of tangible assets - 1
Gain on extinguishment of debt - (127)
Debt related expenses - (149)
Unrealised foreign exchange loss 8 477
Equity-settled share-based payment (credit)/expense (92) 38
(250) (1,134)
(Increase)/decrease in trade and other receivables (90) 654
Increase/(decrease) in trade and other payables 834 (242)
744 412
Net cash inflows/(outflows) used in operating activities 494 (722)
Cash flows from investing activities
Purchases of intangible assets (624) (490)
Purchases of property, plant and equipment (9) (4)
Net cash used in investing activities (633) (494)
Financing activities
Lease payments principal (116) (114)
Lease payments interest (3) (11)
Receipts from borrowings - 4,000
Interest paid - (208)
Repayment of borrowings - (3,000)
Net cash (used in)/from financing activities (119) 667
Net decrease in cash and cash equivalents (258) (549)
Cash and cash equivalent at beginning of the period 886 1,900
Effect of foreign exchange rate changes 1 -
Cash and cash equivalent at end of the period 629 1,351
Notes to the interim financial information
1. General information
KRM22 Plc (the "Company") is a public limited company incorporated in England
and Wales on 2 March 2018 under registration number 11231735. The address of
its registered office is 8(th) Floor, Capital House, 84 - 86 King William
Street, London, EC4N 7BL. The Company listed on the London Stock Exchange on
30 April 2018.
The principal activity the Company and together with its subsidiaries (the
"Group") is to develop and invest in leading risk tools to support regulatory,
market, technology and operational risks.
The Board of Directors approved this interim report on 24 September 2024.
2. Basis of preparation and consolidation
These interim consolidated financial statements have been prepared using
accounting policies based on International Financial Reporting Standards (IFRS
and IFRIC Interpretations) issued by the International Accounting Standards
Board ("IASB") in conformity with the requirements of the Companies Act
2006. They do not include all disclosures that would otherwise be required
in a complete set of financial statements and should be read in conjunction
with the 31 December 2023 Annual Report. The financial information for the
half years ended 30 June 2024 and 30 June 2023 does not constitute statutory
accounts within the meaning of Section 434 (3) of the Companies Act 2006 and
both periods are unaudited.
The annual financial statements of KRM22 Plc (the "Group") are prepared in
accordance with IFRS. The statutory Annual Report and Financial Statements
for 2023 have been filed with the Registrar of Companies. The Independent
Auditors' Report on the Annual Report and Financial Statements for the year
ended 31 December 2023, which was unqualified, did draw attention to a
material uncertainty, being going concern and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
The Group has applied the same accounting policies and methods of computation
in its interim consolidated financial statements as in its 31 December 2023
annual financial statements, except for those that relate to new standards and
interpretations effective for the first time for periods beginning on (or
after) 1 January 2024 and will be adopted in the 2024 financial statements.
There are deemed to be no new and amended standards and/or interpretations
that will apply for the first time in the next annual financial statements
that are expected to have a material impact on the Group.
3. Going concern
In carrying out the going concern assessment, the Directors have undertaken a
significant assessment of the cashflow forecasts for the next twelve months.
Cashflow forecasts have been prepared based on a range of scenarios including,
but not limited to, existing customer churn at different churn rates, no new
contracted sales revenue, delayed sales and a combination of these different
scenarios.
Having assessed the sensitivity analysis on cashflows, the key risks to KRM22
remaining a going concern and not being in breach of the financial covenants
associated with the TT Convertible Loan is existing customers paying on
payment terms and within 45 days of invoice, customer churn of up to 10%,
conversion of some of the sales opportunities that are currently at contract
negotiation stage and maintaining control of the cost base.
The time to close new customers and the value of each customer, which are
deemed individually as high value and low volume in nature, is key to the
forecast being achieved and KRM22 continuing to operate within its existing
facilities, this being KRM22's current cash balance and the ability to
drawdown on the remaining funds available through the TT Convertible Loan.
However, even if the forecast is achieved, there remains a material
uncertainty around KRM22 operating within the financial covenants associated
with TT Convertible Loan. The TT Convertible Loan includes financial
covenants, reported at the end of each quarter, based on the Group's financial
performance and there is a risk that KRM22 breaches the Cash Covenant, which
requires KRM22 to retain a minimum amount of cash, on the 31 December 2024, 31
March 2025 and 30 June 2025 measurement dates. Failure to comply with a
financial covenant will result in an Event of Default which may result in TT
withdrawing the TT Convertible Loan with all accrued amounts becoming
immediately due and payable which would result in KRM22 becoming insolvent.
In May 2024 the Board have received a letter of support from TT that they
would be willing to enter into discussions with KRM22 around amending the
terms of the TT Convertible Loan to ensure that KRM22 does not breach the Cash
Covenant. Conversations between KRM22 and TT around amending the terms are
ongoing however amendments could include, but are not limited to, reducing the
value of the Cash Covenant at each measurement date so that KRM22's cash
exceeds the minimum cash requirement on each measurement date, and deferring
the accrued interest payments that are due on 31 December 2024, 31 March 2025
and 30 June 2025 to a later date. If the terms of the TT Convertible Loan
are not amened, KRM22 would be obliged to seek alternative resolution
including implementing extensive cost reduction measures.
The Directors have concluded that the circumstances set forth above indicates
the existence of a material uncertainty that may cast significant doubt on
KRM22's ability to continue as a going concern. However, given KRM22's
forecast, visible sales pipeline, working capital needs and letter of support
from TT, the Directors have considered it appropriate to prepare the interim
financial statements on a going concern basis and the interim financial
statements do not include the adjustments that would be required if KRM22 were
unable to continue as a going concern.
4. Revenue (and segmental reporting)
The Board of Directors, as the chief operating decision maker in accordance
with IFRS 8 Operating Segments, has determined that KRM22 have identified two
areas of risk management as operating segments, together with a third segment
where the two areas of risk management are not easily separable, however for
reporting purposes into a single global business unit and operates as a single
operating segment, as the nature of services delivered are common.
The Directors consider that the business has two areas of risk management:
Trading Risk and Corporate Risk. Within these segments, there are two revenue
streams with different characteristics, which are generated from the same
assets and cost base.
6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
Recurring 2,935 2,251
Non-recurring revenue 358 151
Total 3,293 2,402
KRM22's revenue from external customers by geography and risk domain is
detailed below:
6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
UK 1,127 897
Europe 346 398
USA 1,654 944
Rest of world 166 163
Total 3,293 2,402
6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
Trading Risk 1,666 1,197
Corporate Risk 1,503 1,113
Multiple Risk 31 80
TT Platform 93 12
Total 3,293 2,402
5. Loss per share
Basic earnings per share is calculated by dividing the loss attributable to
the equity holders of KRM22 by the weighted average number of shares in issue
during the period.
KRM22 has dilutive ordinary shares, this being warrants and options granted to
employees. As KRM22 has incurred a loss in both periods, the diluted loss
per share is the same as the basic earnings per share as the loss has an
anti-dilutive effect.
6 months to 6 months to
30 June 2024 30 June 2023
(unaudited) (unaudited)
£'000 £'000
Loss for the period attributable to equity shareholders of the parent (1,224) (2,251)
Basic weighted average number of shares in issue 35,727,187 35,666,336
Diluted weighted average number of shares in issue 46,263,507 46,958,070
Basic and diluted loss per share (3.4p) (6.3p)
6. Intangibles
The Group capitalised £0.6m of costs (H1 2023: £0.5m, FY 2023: £1.1m)
representing the development of KRM22's applications during the period,
resulting in a net book value of £1.6m (H1 2023: £1.3m, FY 2023: £1.4m)
after an amortisation and impairment charge of £0.5m (H1 2023: £0.4m, FY
2023: £0.9m).
7. Cautionary statement
This document contains certain forward-looking statements relating to KRM22
plc (the "Group"). The Group considers any statements that are not
historical facts as "forward-looking statements". They relate to events and
trends that are subject to risk and uncertainty that may cause actual results
and the financial performance of the Group to differ materially from those
contained in any forward-looking statement. These statements are made by the
Directors in good faith based on information available to them and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information.
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