REG - KRM22 PLC - Trading Update

KRM22Announcement

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RNS Number : 3109U  KRM22 PLC  07 August 2025

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 2025 (the "Period")
which is in line with market expectations.

 

The Company has continued to make good progress in the Period, increasing the
value of its Annual Recurring Revenue ("ARR") from £6.6m at the end of FY
2024 to £7.2m at the end of the Period.

 

The Company expects to report results for the Period in September 2025, and
these are estimated to be:

·             ARR: £7.2m (H1 2024: £6.0m)

·             Total revenue recognised: £3.7m (H1 2024: £3.3m)

·             Adjusted EBITDA: £0.3m (H1 2024: £0.3m)

·             Cash balance as at 30 June 2025: £1.4m (FY 2024:
£1.0m)

 

Approximately 50% of Group ARR is derived from USD denominated contracts and,
with a 9 per cent change in GBP: USD FX rates in the Period, ARR at the start
of the Period restated using a constant FX rate as at Period end was £6.3m
(£6.6m as previously reported using 31 December 2024 FX rates).

 

Using constant exchange rates, the change in ARR during the Period was a net
increase of £0.9m.  This was driven by £1.0m in new ARR, which came from
cross-sales to existing customers and contractual price increases.
 Specifically, cross-sales of the Risk Manager, Limits Manager, and Market
Surveillance applications generated £0.9m, while contractual price increases
across the same applications added another £0.1m.  This growth was partially
offset by a customer churn of £0.1m, which was mainly attributed to a single
institutional customer cancelling their subscription to the Market
Surveillance application.

 

Since the end of the Period, an additional £0.1m of ARR has been generated
through contractual price increases with an existing customer migrating to
Risk Manager, on a three year term, from a rolling monthly contract for the
legacy At-Trade application.  Following industry consolidation, there has
been further churn of £0.2m for the Market Surveillance application which,
whilst this was anticipated and is disappointing, the customer does continue
to use the Limits Manager and Post-Trade applications, with a view to
migrating from the legacy Post-Trade application to Risk Manager.

 

Factoring in the aforementioned changes in ARR since the end of the Period,
and the continual fluctuation in FX rates, Group ARR at the date of this
announcement continues to be £7.2m using 31 July 2025 FX rates (£7.1m using
Period end rates).  The Company continues to have a strong pipeline of sales
opportunities for the Limits Manager and Risk Manager applications which it
expects to close by the end of the year to achieve current market
expectations.

 

The Company's cash balance at the end of the Period was £1.4m, a net increase
in cash of £0.4m since FY 2024.  The Company expects to continue to operate
within its existing cash and debt facilities; however, the Board continues to
remain focused on careful cash management as it enters the second half of the
year.

 

Dan Carter, CEO of KRM22, commented: "With £1.0m of new ARR generated in the
first half of 2025, primarily from cross sale opportunities, and a substantial
pipeline of sales opportunities through the remainder of the year, we are well
positioned to continue with progress to becoming a cash generative and
profitable business."

 

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

Garry Jones, Non-Executive Chairman

Dan Carter, CEO

Kim Suter, CFO

 

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

Stephen Keys / Isaac Hooper (Corporate Finance)

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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