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A buy of 9999 is not very convincing. I appreciate company's reward management with share options that they can sell to obtain free shares so he does not really need to buy any, but a buy of around £3k of shares is not really going to convince anyone, he'd be better not buying at all.
Mmm I'd like to believe Keith Todd, but I must admit my faith is waning along with the markets it would seem.
It seems to me the £2 million cash will keep them going for another year in which time if new contract signing come in he might keep his job otherwise will anyone want to put more money into KRM, even Kestrel Partners have not been buying the shares which they would normally do in one of their holdings if they see value.
All of the financial stats quoted heading in the wrong direction :-
"Financial
· Annualised Recurring Revenue* ("ARR") of £3.7m at 30 June 2020 (H1 2020: £4.0m)
· Total revenue recognised of £2.2m (H1 2020: £2.3m)
· Adjusted EBITDA loss** of £0.3m (H1 2020: loss of £0.3m)
· Loss before tax of £1.7m (H1 2020: £1.2m)
· Cash and cash equivalents at 30 June 2021 of £1.4m (FY 2020: £2.0m)"
Correction the website is correct it has Kestrel owning 23.5%, I was looking at wrong website.
My sort of feeling is that Executive Chairman & CEO, Keith Todd promised a good turnaround last year, but he is not delivering.
He also has 2 executive roles which is not thought a good thing maybe some new blood is what this company needs .
Kestrel have 23.34 % equity according to March RNS (but 17.99% on website ??) and have loaned £3 million to KRM, they thus have a lot of incentive to see changes here if they feel its failing. Of course Kestrel would need to sound out other significant funds to instigate management and company changes, but they are activist investors.
I am assuming it is not Kestrel who are selling.
A big problem with this company is the cost of the software, it's way more expensive than other solutions on the market. They also rely on a small number of clients, when they lose a client they lose a big chunk of revenue.
I just can not see this company surviving once the cash investments have run out. It seems doomed to make annual loses
The last trading update did not impress the markets :-
"The Company expects to report results for the Period on 1 September 2021, and these are estimated to be:
· ARR: £3.7m (H1 2020: £4.0m)
· Total revenue: £2.2m (H1 2020: £2.3m)
· Adjusted EBITDA loss: £0.3m (H1 2020: £0.3m)
· Cash balance as at 30 June 2021: £1.3m (FY 2020: £2.0m)"
The company is talking about more signings in the second half, it really needs to prove it is moving forward with more signings and earnings growth.
You can buy at 35p which is the quoted sell price and you cannot sell in any volume without contacting a broker presumably to trade at a lower price than 35p.
The last month, the share has been going bad, is there any explanation? As far as I know, despite the share performances are below the UK capital markets level, the management costs are still very high, which is another thing I don't know the reason.
I see to remember that KRM22 IPO was at a £1 quite a few years ago.
My hope would be with things seemingly coming together for KRM22 wit its Global Risk Platform and hopefully wining more tier 1 clients that in the next 3-4 years it could get back to that level or maybe beyond that.
I bought in at 38p so at the current 46p bid price its done reasonably well so far.
Kestrel Partners have been buying in March as such I am hopeful for the future.
This is an illiquid stock so can be difficult to buy or sell in volume.
I have been wrong before so DYOR.
What everyone’s target price here?? I very difficult to put a price on this one
Incredible FY results considering the challenges of COVID.
High quality tier 1 clients signed. New business ARR is £0.8M is impressive. Expect the company to be cashflow positive this year.
Can't get link to work when posted.
https://www.***************************/krm22-qa-global-risk-platform-will-be-a-springboard-for-growth-lonkrm/412969879
https://www.***************************/krm22-qa-global-risk-platform-will-be-a-springboard-for-growth-lonkrm/412969879
Kestrel buying around another 1.5% looks like a good sign ....
I’ve bought in good rns last night
Keith is an exceptional and talented CEO. Anyone who has worked with Keith will know what an inspirational and charasmatic leader he is. Keith created fantastic shareholder value as CEO at Fastfill and will do so at KRM22. As an investor I fully back Keith's vision.
Despite COVID challenges which has impacted capital markets, particularly slowing down decisions by firms to procure KRM22 risk management software, the comoany has seen 20% organic growth in new business in 2020. A fantastic achievement by Keith Todd, CEO. With a talented Board and Senior Executive Management team 2021 is going to be a transformational year of growth.
Well he has done an interview at the company website(directors talk) dated (13/1/21) :-
https://www.krm22.com/investor-relations/newsroom
He sounds upbeat. The company has been backed by Kestrel who have 20%, but also backed them in a convertible loan.
The company IPO'ed I believe at £1 so given the sp has just recovered to the 40's the performance is disappointing.
However, if they continue to disappoint the funds led by Kestrel could seek management changes as together they have over 50% if they work together. I reserve judgement on how they do this year.
Came across this company in research.
Worked at icl / Fujitsu when Todd was fd and then ceo, basically bankrupted the company.
See today's RNS, clients are cancelling their contracts. It looks like a client is paying £150k per year. This seems ridiculously expensive, looking at the market other leading solution are available at less than 10% of those costs. I really can not see how this company can turn things around without changing their pricing model.
Well looks like someone investor has just dumped 2% of the stock at 0.20p a share. So the day they announce they are watering down the shares by 18% to raise another million quid. Someone has the good sense to get out. If you look at what is said in the raise notice, an institutional investor agreed to give £1 million, Keith Todd chairman provided £100k (doesn't look like he's willing to mortgage his house) so that leaves £14.5k between one of the directors and an employee. If this is a sure bet why are the other directors and employees not clubbing together? Over this past week i've bought over £100k of Lloyds banks shares, so Mr Todds contribution to his own fundraising is very weak. It also seems there are very few investors willing to back this horse now. My advice would be to get to saferer ground, i really can not see KRM lasting the long haul. And looking at this 2% stock dump today, someone else agrees.