UK risk management software maker KRM22's H1 revenue rises, pre-tax loss narrows
UK risk management software maker KRM22's H1 revenue rises, pre-tax loss narrows
Overview
UK risk management software firm's H1 revenue rose 5% yr/yr to £3.8m, recurring revenue up 12%
Adjusted EBITDA profit fell to £0.2m from £0.4m as company invested in expansion
Pre-tax loss narrowed to £0.3m from £1.6m on lower costs and FX gains
Outlook
Company expects investments in multi-asset expansion to drive growth in 2027 and beyond
KRM22 sees prolonged sales cycles but recent contract wins support confidence in ARR growth
Company says investments in technology and APAC presence may take time to impact ARR growth
Result Drivers
CORE APPLICATION EXPANSION - Growth in ARR and recurring revenue was driven by expanded use of Limits Manager and Risk Manager applications, including sales to existing clients and new clients, per CEO Dan Carter
HIGHER HOSTING COSTS - Gross profit margin declined due to increased AWS hosting spend, which the company said was caused by market volatility and higher trading activity impacting processing capacity requirements
INVESTMENT IN GROWTH - Lower adjusted EBITDA profit was attributed to increased investment in new hires and marketing to support multi-asset expansion, according to management
Company press release: ID:nRSd8611Wa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Net Loss |
| GBP 275,000 |
|
H1 Adjusted EBITDA |
| GBP 200,000 |
|
H1 Gross Profit |
| GBP 2.81 mln |
|
H1 Loss Per Basic Share |
| GBP 0.005 |
|
H1 Pretax Loss |
| GBP 293,000 |
|
Analyst Coverage
Wall Street's median 12-month price target for KRM22 PLC is GBp57.00, about 65.2% above its September 29 closing price of GBp34.50
Reuters Recommended Reads
Sept 29 - UK's Ebiquity H1 revenue falls on legacy client losses
Sept 29 - UK's Billington Holdings H1 profit jumps 70% on data centre demand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)