REG - KRM22 PLC - Trading Update

KRM22Announcement

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RNS Number : 8134Q  KRM22 PLC  29 January 2026

KRM22 plc

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

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 12-month period ended 31 December 2025
("FY2025").

 

The Company expects to report audited results for FY2025 in May 2026, and is
pleased to report the following financial highlights*:

 

·      ARR at 31 December 2025 of £7.6m (FY2024: £6.6m, £6.4m at
constant FX rates) - growth of 19% at constant FX rates

o  New contracted ARR in the year of £1.6m (FY2024: £1.7m)

·      Total revenue recognised of approximately £7.5m (FY2024: £6.8m)
- growth of 11%

·      Adjusted EBITDA: £0.7m (FY2024: £1.0m)

·      Gross cash as of 31 December 2025 of £5.2m with net cash of
£5.2m (FY2024: gross cash of £1.0m, net debt of £3.5m)

·      Successful £9.2m fundraise completed in November 2025

 

As reported in the trading update on 7(th) August 2025, approximately 50% of
Group ARR is derived from USD denominated contracts and, with a 7 per cent
change in GBP:USD FX rates in FY2025, ARR at the start of FY2025 restated
using a constant FX rate as at the end of FY2025 was £6.4m (£6.6m as
previously reported using 31 December 2024 FX rates).

 

Using constant exchange rates, the change in ARR during FY2025 was a net
increase of £1.2m.  This was driven by £1.6m from cross-sales to existing
customers and contractual price increases.  Specifically, cross-sales of the
Risk Manager, Limits Manager, and Market Surveillance applications generated
£1.1m, while contractual price increases across the same applications added
another £0.5m.  This growth was partially offset by a churn of £0.4m, which
was mainly attributed to two institutional customers who cancelled their
license of the Market Surveillance application whilst, in both cases, singing
new multi-year contracts to license other KRM22 applications.

 

With the successful fundraise completed in November 2025 raising £9.2m, KRM22
is now debt free and, following receipt of a three-year license fee payment
from one its customers, the Company had a strong cash position at 31 December
2025 of £5.2m.  This cash will be utilised to support the growth strategy
presented to investors, namely investment in additional sales, marketing and
development resource to allow KRM22 to expand its existing suite of risk
management applications to offer multi-asset solutions to the capital markets
industry.  Importantly, post the fund raising, management is able to focus on
growing the business and delivering on the Company's strategy, without the
distraction of managing a complex balance sheet and operating within
restrictive financial covenants.

 

Dan Carter, CEO commented: "KRM22 delivered a solid performance in 2025, with
ARR growing 19% to £7.6m with new contracted ARR of £1.6m reflecting the
continued demand for our applications.  With our year‑end cash position
strengthened significantly to £5.2m, we enter 2026 with a strong sales
pipeline, a robust balance sheet, and clear strategic priorities, positioning
the business for continued growth."

 

*The financial expectations noted above are preliminary, and subject to
year-end financial close and audit review processes.

 

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

 Dan Carter, CEO

 Kim Suter, CFO

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

 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 KRM22.com

 

 

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