KRM22 2019 Loss To Meet Market Forecasts After Strong Revenue Growth

(Alliance News) - KRM22 PLC said Monday it expects its adjusted loss for 2019 to be in line with market expectations.

The capital markets risk management firm expects a sharp jump in revenue to GBP4.0 million from GBP1.3 million the year before, and will post an adjusted Ebitda loss in line with market expectations.

"A small number of contract signings were slightly delayed and have fallen into the new financial year, which the company expects to close imminently," KRM22 said.

KRM22 said its annualised recurring revenue in 2019 was GBP4.5 million, up 36% on the GBP3.3 million seen the year before.

This reflects an 18% organic growth rate in 2019, KRM22 said.

"Sterling's recent strengthening has had a negative impact on contracted ARR as well as the 2019 revenue, but slight positive impact on adjusted Ebitda loss," the company continued.

KRM22 noted its ARR in 2019 includes GBP300,000 from a customer that has recently been acquired but the company is working with the new owner to continue the relationship and potentially to provide additional services.

The company said it has a "strong" pipeline, which includes deals that have already been commercially agreed but are in the process of being contracted.

"The action taken during 2019 to reduce the cost base combined with the increase in ARR and strong sales pipeline has ensured the company is on track to be adjusted Ebitda profitable and cash flow positive in 2020," KRM22 said.

Executive Chair & Chief Executive Keith Todd added: "In the last twelve months we have seen KRM22 making significant progress. The 'Global Risk Platform', which is the central pillar of our strategy, is live and provides access to multiple offerings including our Enterprise Risk Cockpit, Market Risk and Regulatory Risk suite. We are confident that we are on course in 2020 to deliver on our commitments."

Shares in KRM22 were untraded in London on Monday but last closed at 52.00 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

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