REG - KRM22 PLC - Final Results
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RNS Number : 0588E KRM22 PLC 13 May 2026
KRM22 plc
("KRM22", the "Group" and the "Company")
AUDITED RESULTS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025
KRM22 plc (AIM: KRM.L), the technology and software company focused on risk
management in capital markets, announces its audited results for the year
ended 31 December 2025 ("2025", the "Year").
Financial highlights
· Annualised Recurring Revenue (ARR)(( 1 (#_ftn1) )) as at 31 December
2025 of £7.6m (2024: £6.6m, £6.4m at constant FX rates) - growth of 18.8%
at constant FX rates
o New contracted ARR in 2025 of £1.6m (2024: £1.7m)
· Total revenue recognised of £7.4m (2024: £6.8m) - growth of 9.9%
· Adjusted EBITDA profit(( 2 (#_ftn2) )) of £0.8m (2024: profit of
£1.0m)
· Loss before tax of £2.1m (2024: loss of £1.4m)
· Gross cash as at 31 December 2025 of £5.2m with net cash of £5.2m
(2024: gross cash of £1.0m, net debt of £3.5m)
Operational highlights
· Successful £9.2m fundraise completed in November 2025 to repay loan
with Trading Technologies International, Inc. ("TT"), subsequently making the
Company debt free, and provide funding to expand the existing suite of
applications to offer multi-asset solutions to the capital markets industry
· 8 new ARR contracts signed in the year including 3 new customers
· 51 institutional customers as at 31 December 2025 including 10 via
the relationship with Trading Technologies International, Inc.
· Risk Manager and Limits Manager application being used by 18 of the
top 60 Future Commissions Merchants ("FCMs")
Post year-end events
· Contractual ARR of £7.6m as at the date of this report at current FX
rates with contract wins offset by unfavourable movements in FX rates
· New contract wins from existing customers extending their use of
existing applications and migrating from legacy At-Trade and Post-Trade
applications to the Risk Manager application
· Limits Manager application wins Risk Management Solution of the Year
at the FOW International Awards 2026
Dan Carter, CEO of KRM22, commented: "2025 was another successful year for
KRM22 with continued growth in ARR and recognised revenue, and importantly,
the successful completion of a £9.2m fundraise to materially improve the
underlying financial position of the Company and provide the springboard for
further growth through the expansion of our existing applications to become a
multi-asset market-leading risk technology business."
For further information please contact:
KRM22 plc
InvestorRelations@krm22.com
Dan Carter, CEO
Kim Suter, CFO
Cavendish Capital Markets Limited (Nominated Adviser and Broker)
+44 (0)20 7220 0500
Stephen Keys / Isaac Hooper (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 (https://www.krm22.com/) .
CHAIRMAN'S STATEMENT
I am pleased to report on another year of substantial growth for KRM22.
The Company completed an oversubscribed fundraise in November 2025 and is now
debt free with substantial funds to invest in new opportunities. We are in
the best financial position since the Company was founded and look forward to
seeing the fruits of our forward initiatives in the years ahead.
We are very much looking at creating long-term value for shareholders and
regard 2026 as our "investment year" with the Company benefiting from this
investment in 2027 and beyond. We are adding appropriate resource to support
our expanding client base and the expansion of our applications into different
asset classes, upgrading our sales team, product development professionals and
technology innovation, as well as closing technical debt and ensuring IT
security.
Global events have generated market volatility, and whilst sales cycles are
often extending, the need for our Limits Manager, Risk Manager, Surveillance
Manager and Control Manager applications by clients of all types has never
been greater. We are providing state of the art risk management systems to
major financial institutions for whom these applications address the
existential risks to their business.
I want to congratulate the entire KRM22 team globally for another year of
progress, and to recognise their continued hard work and loyalty to the
Company. I look forward to further growth, continued increase in revenue in
2026, and further expansion of our client base and pipeline of sales
opportunities.
Many thanks to our loyal clients, most of whom are now contracted with us on
multi-year deals, reflecting the partnership between them and KRM22.
With a strong financial foundation in place, KRM22 is now well positioned to
expand its risk management applications into comprehensive multi-asset
solutions for the capital markets industry, and I look forward to the benefits
this will deliver throughout 2026 and beyond.
Garry Jones
Non-Executive Chairman
CEO'S REPORT
2025 stands as the most pivotal in KRM22's evolution, redefining our strategic
position and setting the foundation for accelerated growth ahead. Beyond
delivering another year of strong operational progress, we took the strategic
steps necessary to prepare the Company for the next phase of its growth. We
advanced our product suite, broadened our market presence and materially
strengthened our financial position. These actions collectively mark 2025 as
a transformative year for KRM22 and a key milestone in our mission to deliver
modern, integrated risk management solutions to the capital markets.
Despite continued macro‑economic volatility and uneven market activity
during the year, we remained focused on disciplined execution and sustained
investment in our strategy. Our ability to deliver 18.8% Annual Recurring
Revenue ("ARR") growth at constant FX rates, secure £1.6m in new contracted
ARR and, perhaps most importantly, successfully completing a transformative
£9.2m fundraise, reflects both the resilience of our business and the
strength of our long‑term vision.
With a market increasingly moving towards multi‑asset risk platforms and
integrated workflows, KRM22 is exceptionally well‑positioned to lead the
next generation of risk technology solutions for capital markets firms
globally.
Continued revenue growth
KRM22 delivered another year of meaningful financial progress. ARR increased
to £7.6m as at 31 December 2025, up from £6.6m a year earlier (£6.4m at
constant FX rates), representing 18.8% growth at constant FX rates. New
contracted ARR of £1.6m for the year demonstrates ongoing demand across both
new and existing customers and is broadly consistent with the record £1.7m
achieved in 2024.
Total revenue recognised grew to £7.4m, an 9.9% year‑on‑year increase,
supported by expanding customer adoption across our Risk Manager and Limits
Manager applications. Notably, we continued to deliver strong sales
execution across the trading risk suite, reinforcing our belief that we are
building the emerging industry standard for risk management.
A key milestone for the year was the strengthening of our balance sheet.
Following the successful fundraise completed in November 2025, together with
continued operating discipline, we closed the year with gross and net cash of
£5.2m, a substantial improvement from the prior year's net debt position of
£3.5m.
Our customer base has continued to expand. We closed eight new ARR contracts
during the year, including three entirely new customers, bringing our total
institutional customers to 51, with 10 of these relationships stemming from
our strategic partnership with Trading Technologies International, Inc.
("TT"). Importantly, 18 of the top 60 Future Commission Merchants ("FCMs")
now rely on our Risk Manager and Limits Manager applications - a strong
validation of the market shift towards modern risk platforms.
Supporting growth through strategic investment
In November 2025 we completed a £9.2m fundraise, an incredibly important
strategic event. This raise enabled us to settle the convertible loan
facility provided by TT, strengthen the Company's financial flexibility and
eliminating cost constraints which we feel has restricted our ability to
expand beyond the existing asset class serviced by our applications. Beyond
deleveraging the balance sheet, the fundraise creates capacity for disciplined
investment into the next phase of our product roadmap.
This investment will accelerate the expansion of our applications to support
multi‑asset coverage, ensuring that our risk management suite evolves in
line with the needs of global trading and clearing firms. With firms
increasingly demanding cross‑asset transparency, integrated workflows, and
consistent risk controls across all trading activity, we view multi‑asset
capabilities as a critical driver of our medium‑term growth.
We are investing across every part of the business, adding high‑calibre
talent to strengthen our product, technology and commercial capabilities.
This includes new Product Managers for both Control Manager (previously the
Risk Cockpit) and Surveillance Manager. The Control Manager Project Manager
role has been filled by a long‑standing external user of the application,
bringing unparalleled insight directly into our product development and
marketing of the application. We have expanded our engineering capacity with
additional site reliability engineers and developers. To support our growing
international footprint, especially in the APAC region, we have added
additional Client Services resource in Singapore whilst also adding more
Technical Account Managers to ensure we maintain the high‑touch service our
customers expect as our platform adoption continues to accelerate. We have
expanded our commercial reach with new Sales and Marketing resource to support
our expansion into multi‑asset classes.
Our operational performance remained solid throughout the year. While
adjusted EBITDA of £0.8m was slightly lower than 2024, we continued to
operate profitably while prioritising targeted investment in product
development and revenue‑generating capabilities. The balance between
disciplined cost management and strategic reinvestment remains central to our
long‑term plan.
Application developments
Our product strategy remains focused on delivering highly integrated, modern
risk and surveillance capabilities that enable firms to better understand,
control, and govern their trading activity.
During the year, Risk Manager and Limits Manager continued to gain traction,
particularly with top‑tier FCMs who increasingly view these applications as
essential infrastructure. The adoption of our applications by 18 of the top
60 FCMs demonstrates the meaningful shift underway in the industry as firms
phase out legacy risk technology in favour of modern, real‑time solutions.
We also continued to enhance our market surveillance offering through our
strategic partnership with TT, which remains an important channel for future
growth. With the new surveillance application now fully integrated into the
TT ecosystem, we expect further commercial momentum in 2026 and beyond.
Post year‑end, our Limits Manager application received significant external
recognition, winning Risk Management Solution of the Year at the FOW
International Awards 2026 - a clear validation of our continued product
innovation and leadership.
Following completion of the fundraise, we are now investing in a proactive
outbound marketing strategy designed to increase brand visibility and drive
more qualified opportunities into our sales funnel. This includes targeted
LinkedIn campaigns aimed at a clearly defined audience of decision‑makers
within our addressable market, supported by tailored video content that
highlights KRM22's value proposition and showcases each of our applications.
These initiatives represent an important step in elevating our market presence
and creating sustained top‑of‑funnel momentum to support our growing
commercial efforts.
Wider capital markets trends
Risk management continues to be a central area of focus for capital markets
firms. With sustained regulatory scrutiny, increasing operational
complexity, and the ongoing evolution of electronic trading, firms are
prioritising investment in robust, flexible, and integrated risk systems.
Legacy technology simply cannot meet the needs of today's market structure,
particularly as more markets move towards 24/7 trading. Firms are
increasingly seeking multi‑asset solutions, real‑time analytics,
comprehensive audit trails, and efficient workflow automation, all
capabilities available within KRM22's platform design and strategic focus.
The global SaaS risk management market remains a large opportunity, and our
growing presence within the FCM community, alongside our strong partnership
with TT, positions us well to capture a meaningful share of this expanding
landscape.
Outlook
2025 was a year of strategic progress, operational execution, and strengthened
financial foundations. With ARR increasing to £7.6m, positive adjusted
EBITDA, a vastly improved balance sheet, and the successful execution of a
major fundraise, KRM22 enters 2026 from a position of confidence and momentum.
While we have experienced some delays in conversion of the sales pipeline with
only £0.1m of new contractual ARR signed since the start of 2026, the delays
have been driven by extended vendor onboarding and internal governance
processes; a reflection of heightened market volatility following the
geopolitical uncertainty in the Middle East, with many firms prioritising
their core trading and risk operations. New projects and initiatives by
these firms are not being withdrawn with clients and prospects remaining
highly engaged. The demand for our solutions remains strong and the quality
of the sales pipeline opportunities across both direct and TT-supported sales
channels continues to be robust.
With the market increasingly recognising the value of our integrated,
award‑winning platform, together with a strengthened financial position, the
Board and I remain confident in KRM22's strategy and its ability to deliver
sustained progress toward becoming a cash‑generative, profitable,
multi‑asset market‑leading risk technology business.
Dan Carter
CEO
CFO'S REPORT
2025 was a continuation of the financial momentum reported in the prior year
with significant growth in total revenue recognised, ARR, and importantly, a
significant improvement in the net cash position of the business following the
successful fundraise completed in November 2025. KRM22 is now debt free as
it looks to utilise the capital raised from the fundraise to expand its
existing suite of applications to offer multi-asset solutions to the capital
markets industry.
There was growth of 9.9% in total revenue recognised to £7.4m from £6.8m
reported for the year ended 31 December 2024. ARR increased to £7.6m as at
31 December 2025, up from £6.6m at 31 December 2024 (£6.4m at constant FX
rates) - a year-on-year increase of 18.8% at constant FX rates. The growth
in ARR and continued management of the underlying cost base of the business,
together with the £9.2m gross fundraise completed, contributed to a closing
cash balance of £5.2m (2024: £1.0m).
Income Statement
Total revenue
Revenue recognised for the year to 31 December 2025 was £7.4m (2024: £6.8m),
an increase of 9.9% compared with the prior year, with 95.0% (2024: 92.2%) of
total revenue generated from recurring customer contracts. Non-recurring
revenue for the year ended 31 December 2025 totalled £0.4m (2024: £0.5m) and
related principally to customer implementations and product development work.
Recurring revenue
ARR is a key metric and KPI for KRM22 and, using constant FX rates, as at 31
December 2025 ARR had increased by 18.8% to £7.6m (2024: a net increase of
22.2% to £6.6m), a net increase of £1.2m (2024: net increase of £1.2m) at
constant FX rates.
New contracted ARR in the year totalled £1.6m (2024: £1.7m) of which £0.2m
(2024: £0.7m) was from new customers, primarily for the Risk Manager
application, and £1.4m (2024: £1.0m) was generated from existing
customers. Of the £1.4m of new ARR generated from existing customers,
£0.9m was derived from existing customers purchasing additional applications
and £0.5m was contractual renewals for existing applications, with increases
in ARR value and extensions of contractual length.
The amount of ARR generated through partner products and services, primarily
through data and news feeds, with minimal margin to KRM22, accounted for 4.4%
(2024: 4.2%) of total ARR at 31 December 2025.
Gross profit
Gross profit for the year to 31 December 2025 was £5.8m (2024: £5.6m).
There was a decrease in gross profit margin to 78% compared to the prior year
margin of 83%. The reduction in gross margin was a result of additional
investment in AWS hosting infrastructure costs and sales commission payable to
TT in connection with new ARR contracts executed in the year.
Capitalised development
A total of £1.1m (2024: £1.1m) of development was capitalised in the year to
31 December 2025. Capitalised development is amortised over three years.
Adjusted EBITDA
Adjusted EBITDA is the key metric that the Company considers when
understanding the cash-profitability of the business. This is due in
particular to the non-cash items that impact the Income Statement under IFRS
accounting, such as non-cash share-based payment charges and one-off cash
items such as Group reorganisation costs.
Adjusted EBITDA for the year to 31 December 2025 was a profit of £0.8m (2024:
profit of £1.0m).
A reconciliation of Adjusted EBITDA profit to the reported operating loss is
provided as follows:
2025 2024
£'m £'m
Adjusted EBITDA profit 0.8 1.0
Depreciation and amortisation (1.2) (1.2)
Group restructure costs - (0.6)
Loss on extinguishment of debt (0.1) -
Unrealised foreign exchange loss (0.9) 0.0
Funding and debt related expenses (0.1) -
Shared-based payment expense (0.1) (0.1)
Operating loss (1.6) (0.9)
Operating loss
Reported operating loss for the year to 31 December 2025 was £1.6m (2024:
loss of £0.9m) and included unrealised foreign exchange losses of £0.9m,
which was primarily driven by the movement in GBP:US$ FX rates in the year,
and costs and charges of £0.2m related to the fundraise and debt
extinguishment.
Finance charges
Net finance expense in the year was £0.6m (2024: £0.5m) and primarily
related to loan interest paid on the Convertible Loan with the balance of the
Convertible Loan settled in November 2025.
Taxation
The tax credit in the year was £0.1m (2024: credit of £0.1m) which includes
a £0.1m (2024: £0.1m) R&D tax credit received.
Financial position
Assets
The cash balance as at 31 December 2025 was £5.2m (2024: £1.0m).
Current assets at 31 December 2025 include trade and other receivables of
£1.3m (2024: £0.7m).
Non-current assets were £5.5m (2024: £5.6m) relating principally to: £3.4m
for goodwill and assets acquired (2024: £4.0m) and £2.0m (2024: £1.6m) for
capitalised development costs.
Liabilities
As at 31 December 2025, KRM22's principal liabilities were:
· £5.0m of deferred revenue (2024: £2.8m); contracted and paid
services that will be released in a future period.
· £0.3m (US$0.3m) deferred consideration for earn out payments for the
acquisition of Object+. The deferred consideration can be satisfied in
either cash or Company Ordinary Shares in KRM22 at the Company's discretion.
· £0.2m (US$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 31 December 2025, KRM22 did
not have any leased-office rentals remaining under IFRS16 however the
liability relates to an office lease that expired in 2022.
Investors
As an AIM quoted business, a large proportion of KRM22's shareholders are
professional investment funds. In addition, the Directors together owned
5,585,978 shares at the year end, representing 9.4% of the Company's issued
share capital.
Funding
On 7 November 2025, the Company raised gross proceeds of £9.2m in equity
funding through a subscription and placement of 23,112,500 new shares at 40
pence per share (the "Fundraise"). The proceeds from the Fundraise were used
to settle the Convertible Loan with TT and to leave a balance of approximately
£3.0m to fund the Company's next phase of growth through the expansion of
KRM22's existing suite of applications into different asset classes.
Use of cash in the year
The net cash inflow in the year was £4.2m, which included the £9.2m gross
proceeds from the Fundraise completed in November 2025. After accounting for
Fundraise transaction costs and settlement of the Convertible Loan, the net
amount received from the Fundraise was £3.0m. Excluding the net Fundraise
receipt of £3.0m, the net cash inflow for the year was £1.2m, with the
Company benefiting from over 70% of ARR receipts being invoiced annually in
advance. Expenditure on capitalised development in the year of £1.1m was
consistent with the prior year.
Going concern
The financial statements have been prepared on a going concern basis based on
a range of cashflow forecasts and scenarios covering a period of at least
twelve months from the date of this report. 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. Further
analysis of KRM22's going concern position is detailed in note 2 (notes to the
financial information).
Shareholdings and Earnings per share
As at 31 December 2025, KRM22 had 59,316,219 shares in issue and this was also
the undiluted weighted average number of shares for the period. The
resulting Earning per Share ("EPS") is a 5.1p loss per share (2024: loss of
3.6p). Due to the loss made by the Company in the year, the diluted EPS is
the same as EPS.
Conclusion
The continued momentum in financial performance in 2025, with sustained ARR
growth at an average of 20% year-on-year over the last two years, and total
revenue recognised increasing by 9.9% compared with 2024 is demonstration that
KRM22 is making good progress on its journey to becoming a cash generative and
profitable business. The Fundraise completed in November 2025, and the
settlement of the Convertible Loan, has helped strengthen the financial
position of KRM22 and provides funding for the structured growth and expansion
of our existing suite of applications into different asset classes whilst also
removing the interest burden and restrictive covenants associated with a debt
facility.
Kim Suter
CFO
Consolidated income statement and statement of comprehensive income
for the year ended 31 December 2025
Note 2025 2024
£'000 £'000
Revenue 3 7,439 6,769
Cost of sales
(1,654) (1,167)
Gross profit 5,785 5,602
Other operating income - 84
Administrative expenses (7,371) (6,566)
Operating profit before interest, taxation, depreciation, amortisation, share 783 976
based payment and exceptional items ('Adjusted EBITDA')
Depreciation and amortisation (1,201) (1,225)
Group reorganisation costs - (561)
Loss on extinguishment of debt (net) (134) -
Unrealised foreign exchange loss (883) (13)
Funding and debt related expenses (48) -
Share based payment charge (103) (57)
Operating loss (1,586) (880)
Finance charge (net) (557) (547)
Loss before taxation (2,143) (1,427)
Taxation 117 133
credit
Loss for the year (2,026) (1,294)
Loss for the year attributable to:
Equity shareholders of the parent (2,026) (1,294)
(2,026) (1,294)
Other comprehensive income
Item that may be reclassified subsequently to profit and loss:
Exchange gain/(loss) on translation of foreign operations 648 (145)
Total comprehensive loss for the year (1,378) (1,439)
Total comprehensive loss for the year attributable to:
Equity shareholders of the parent (1,378) (1,439)
(1,378) (1,439)
Loss per ordinary share
Basic losses per (5.1p) (3.6p)
share
4
Diluted losses per (5.1p) (3.6p)
share
4
Consolidated statement of financial position
at 31 December 2025
Note 2025 2024
£'000 £'000
Non-current assets
Goodwill 3,430 3,485
5
Other intangible 2,015 2,128
assets
5
Property, plant and 14 19
equipment
5,459 5,632
Current assets
Trade and other 1,287 773
receivables
Cash and cash 5,186 1,035
equivalents
6,473 1,768
Total assets 11,932 7,400
Current liabilities
Trade and other 6,225 4,218
payables
Lease 233 249
liabilities
Loans and - 774
borrowings
Derivative financial 307 209
liability
6,765 5,450
Net current liabilities (292) (3,682)
Non-current liabilities
Loans and - 4,039
borrowings
Deferred tax 93 145
liability
93 4,184
Total liabilities 6,858 9,634
Net assets/(liabilities) 5,074 (2,234)
Equity
Share 5,932 3,596
capital
Share premium 27,311 20,737
Merger reserve (190) (190)
Convertible debt reserve - 327
Foreign exchange reserve 389 (259)
Share-based payment 2,826 2,723
reserve
Retained deficit (31,194) (29,168)
Total equity 5,074 (2,234)
Consolidated statement of cash flows
for the year ended 31 December 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Loss for the year (2,026) (1,294)
Adjustments for:
Tax credit (117) (133)
Net finance expense 557 547
Amortisation of intangible assets 1,194 1,081
Depreciation of property, plant and equipment and right of use assets 7 144
Loss on extinguishment of debt 134 -
Losses on foreign exchange 883 13
Equity-settled Share-based payment charge 103 57
Income taxes received 81 97
816 512
(Increase)/decrease in trade and other receivables (554) 409
Increase in trade and other payables 2,116 502
Net cash flows from operating activities 2,378 1,423
Cash flows from investing activities
Purchase of intangible assets (1,143) (1,148)
Purchase of property, plant and equipment (6) (7)
Net cash used in investing activities (1,149) (1,155)
Cash flows from financing activities
Net proceeds from share issue * 6,882 -
Costs of the issue of shares (542) -
Lease payments principal - (119)
Lease payments interest - (3)
Repayments of borrowings and interest (3,380) -
Net cash from financing activities 2,960 (122)
Net increase in cash and cash equivalents 4,189 146
Cash and cash equivalents at beginning of year 1,035 886
Effect of foreign exchange rate changes (38) 3
Cash and cash equivalents at end of year 5,186 1,035
* The Company raised gross proceeds of £9.2m from the issue of new shares, of
which £2.3m was received by way of a partial conversion of the Convertible
Loan with the balance of £6.9m received in cash.
Consolidated statement of changes in equity
for the year ended 31 December 2025
Ordinary Share premium Merger Convertible debt reserve Foreign exchange reserve Share based payment reserve Retained Total equity
shares
reserve
losses
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 3,567 20,517 (190) 327 (114) 2,945 (28,153) (1,101)
Loss for the year - - - - - - (1,294) (1,294)
Other comprehensive gain - - - - (145) - - (145)
Total comprehensive gain/(loss) - - - - (145) - (1,294) (1,439)
Allotment of share capital 29 220 - - - - - 249
Share-based payments - - - - - (222) 279 57
At 31 December 2024 3,596 20,737 (190) 327 (259) 2,723 (29,168) (2,234)
Loss for the year - - - - - - (2,026) (2,026)
Other comprehensive gain - - - - 648 - - 648
Total comprehensive gain/(loss) - - - - 648 - (2,026) (1,378)
Convertible debt option - - - (327) - - - (327)
Allotment of share capital 2,336 6,574 - - - - - 8,910
Share-based payments - - - - - 103 - 103
At 31 December 2025 5,932 27,311 (190) - 389 2,826 (31,194) 5,074
Notes to the financial information
1. Accounting basis
The financial information set out in this document does not constitute the
Group's statutory accounts for the years ended 31 December 2024 or 2025.
Statutory accounts for the years ended 31 December 2024 and 31 December 2025,
which were approved by the Directors on 12 May 2026, have been reported on by
the Independent Auditors. The Independent Auditor's Reports on the Annual
Report and Financial Statements for each of the years ended 31 December 2024
and 2025 were unqualified and did not contain a statement under 498(2) or
498(3) of the Companies Act 2006. For the year ended 31 December 2024, the
Auditor's Report did draw attention to a material uncertainty in respect of
going concern.
Statutory accounts for the year ended 31 December 2024 have been filed with
the Registrar of Companies. The statutory accounts for the year ended 31
December 2025 will be delivered to the Registrar of Companies in due
course and will be posted to shareholders shortly, and thereafter will be
available from the Company's registered office at 8(th) Floor, Capital House,
84 - 86 King William Street, London, EC4N 7BL and from the Company's website:
https://krm22.com/investors/ (https://krm22.com/investors/) .
The financial information set out in these results has been prepared using the
recognition and measurement principles of International Accounting Standards,
International Financial Reporting Standards and Interpretations in conformity
with the requirements of the Companies Act 2006. The accounting policies
adopted in these results have been consistently applied to all the years
presented and are consistent with the policies used in the preparation of the
financial statements for the year ended 31 December 2025, except for those
that relate to new standards and interpretations effective for the first time
for periods beginning on (or after) 1 January 2024. There are deemed to be
no new standards, amendments and interpretations to existing standards, which
have been adopted by the Group, that have had a material impact on the
financial statements.
The Group's financial information has been presented in Pounds Sterling
(GBP). Amounts are rounded to the nearest thousand, unless otherwise stated.
2. Going concern
These financial statements have been prepared on the going concern basis.
The Directors have reviewed KRM22's going concern position taking into account
of its current business activities, budgeted performance and the factors
likely to affect its future development, which are set out in this Annual
Report, and include KRM22's objectives, policies and processes for managing
its capital, its financial risk management objectives and its exposure to
credit and liquidity risks.
The Directors have undertaken a significant assessment of the cashflow
forecast covering a period of at least twelve months from the date of approval
of the financial statements. 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 is existing customers paying on payment terms and
within 45 days of invoice, customer churn or 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. However, given KRM22's forecast, visible sales
pipeline, and working capital needs, the Directors have considered it
appropriate to prepare the financial statements on a going concern basis and
the financial statements do not include the adjustments that would be required
if KRM22 were unable to continue as a going concern.
3. 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 internal management accounting information has been prepared in accordance
with IFRS but has a non-GAAP 'Adjusted EBITDA' as a profit measure for the
overall group. This amount is reported on the face of the income statement.
KRM22's revenue from external customers and information about its non-current
assets, excluding deferred tax, by geography is detailed below:
Non-current Non-current
Revenue assets Revenue assets
2025 2025 2024 2024
£'000 £'000 £'000 £'000
UK 2,862 921 2,418 2,200
Europe 738 1,376 692 1,333
USA 3,478 3,162 3,315 2,099
Rest of world 361 - 344 -
Total 7,439 5,459 6,769 5,632
The Directors consider that the business has two areas of risk management:
Trading Risk and Corporate Risk as is described in the Strategic Report.
Within these segments, there are two revenue streams with different
characteristics, which are generated from the same assets and cost base.
One customer generated more than 10% of total revenue recognised during the
year ended 31 December 2025. The total revenue received from this customer
was £1.0m (2024: £1.2m) and is included within the USA segment. The same
customer was the only customer which generated more than 10% of revenue in the
year ended 31 December 2024.
Non-current assets include goodwill and intangible assets recognised on
consolidation and are classified by reference to the geographical location of
the KRM22 group company which initially acquired the acquiree.
Recurring revenue is recognised over the period of time and non-recurring
revenue is recognised at a point in time.
2025 2024
£'000 £'000
Recurring revenue 7,069 6,239
Non-recurring revenue 370 530
Total revenue 7,439 6,769
2025 2024
£'000 £'000
Trading Risk 4,189 3,359
Corporate Risk 2,903 3,002
Multiple Risk 60 60
TT platform 287 348
Total 7,439 6,769
4. Loss per share
Basic earnings per share is calculated by dividing the loss attributable to
the equity holders of KRM22 by the basic weighted average number of shares in
issue during the year.
KRM22 has dilutive ordinary shares, this being warrants, restricted stock
awards and share options granted to employees. As KRM22 has incurred a loss
in the year, the diluted loss per share is the same as the basic earnings per
share as the loss has an anti-dilutive effect.
2025 2024
£'000 £'000
Loss for the year attributable to equity holders of the parent (2,026) (1,294)
Basic weighted average number of shares in issue 39,567,346 35,815,256
Diluted weighted average number of shares in issue 51,775,192 46,318,047
Basic and diluted loss per share (5.1p) (3.6p)
5. Intangible assets
Acquired
software & Capitalised
Goodwill on related assets development
consolidation £'000 costs Total
£'000 £'000 £'000
Cost
At 1 January 2025 7,772 2,880 5,513 16,165
Additions - - 1,143 1,143
Foreign exchange movements (165) (39) (33) (237)
At 31 December 2025 7,607 2,841 6,623 17,071
Accumulated amortisation
At 1 January 2025 4,287 2,384 3,881 10,552
Amortisation for the year - 122 1,069 1,191
Foreign exchange movements (110) 13 (20) (117)
At 31 December 2025 4,117 2,519 4,930 11,626
At 31 December 2024 3,485 496 1,632 5,613
At 31 December 2025 3,430 322 1,693 5,445
6. Events after the reporting date
On 7 January 2026, the Company paid US$0.2m as consideration for a partial
settlement of the deferred consideration payable in respect of the historical
acquisition of Object+ Holding B.V.
7. Cautionary statement
This document contains certain forward-looking statements relating to KRM22.
KRM22 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 Company 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.
1 (#_ftnref1) 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.
2 (#_ftnref2) Adjusted EBITDA is the reported profit for the year, adjusted
for recurring non-monetary costs including depreciation, amortisation,
unrealised foreign exchange loss and share-based payment charge and
non-recurring costs, both monetary and non-monetary, including Company
reorganisation costs, loss on extinguishment of debt and funding and debt
related costs.
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. END FR AKBBBKBKBBPD
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