REG - KRM22 PLC - New Customer Contract

KRM22Announcement

29/08/2024 07:00

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RNS Number : 0603C  KRM22 PLC  29 August 2024

KRM22 plc

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

New Customer Contracts - ARR to £6.3m

 

KRM22 plc, (AIM: KRM) the technology and software investment company that
focuses on risk management for capital markets, is pleased to announce the
signing of a new customer contract for the Risk Manager product and two
contract renewals.

 

The Risk Manager contract, worth over £0.7m over the three year life of the
contract, is with a major Futures Commission Merchant ("FCM"). The Risk
Manager product, which combines the offerings of the legacy At-Trade and Post
Trade products, together with additional Value at Risk ("VaR") functionality,
was launched at the start of 2024 and, since its launch, the Company has now
signed two FCMs in the year to date generating Annual Recurring Revenue
("ARR") of £0.3m.

 

Additionally, the two contract renewals, both for three year terms, are with
the Company's largest Market Surveillance and Risk Cockpit customers. The
contract renewal for the Market Surveillance product increased ARR by £0.1m
whilst the Risk Cockpit renewal saw a reduction in ARR by £0.1m with the
customer continuing to license the product whilst not continuing with
professional services which had formed part of the previous contract.

 

Following the announcement of these contracts, and as at the date of this
announcement, the Group's ARR has seen a net increase, after accounting for
the aforementioned new contract, contract renewals, and the impact of FX
rates, by £0.2m to £6.3m (H1 2024: £6.0m). This underpins revenue forecasts
for the year and is in line with existing market forecasts to reach £6.5m ARR
by the end of 2024.

 

Dan Carter, CEO commented: "This contract win is testament to the strength of
the recently launched Risk Manager application, whilst the renewals from two
of our largest customers is validation of our continued excellent service
levels. The growth in ARR to £6.3m keeps us right on track with year-end
expectations and on our journey to create a £10m ARR, cash generative and
profitable business."

 

 

For further information please contact:

 

 KRM22                                                                                                                                                                                   InvestorRelations@krm22.com (mailto:InvestorRelations@krm22.com)
 plc

 Garry Jones, Chairman

 Dan Carter, CEO

 Kim Suter, CFO

 Cavendish Capital Markets Limited (Nominated Adviser and Sole                                                                                                                           +44 (0)20 7220 0500
 Broker)

 Carl Holmes / Rory Sale (Corporate Finance)

 Sunila de Silva (ECM)

 

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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