Last checked at 13 Jan 2020 07:00
KRM22 plc
("KRM22", the "Group" or the "Company")
Trading update
KRM22 plc (AIM: KRM.L) announces a trading update for the 12month period to 31 December 2019 ("FY2019").
The Company expects to report a FY2019 full year performance of Adjusted EBITDA loss in line with market expectations, from recognised revenue of approximately £4.0m (2018 £1.3m). A small number of contract signings were slightly delayed and have fallen into the new financial year, which the Company expects to close imminently.
The Company has ARR of £4.5m (2018 £3.3m) as at FY2019 at the 2019 constant exchange rate (£4.3m at current rates). This reflects an 18% organic growth rate for FY2019. Sterling's recent strengthening has had a negative impact on contracted ARR as well as the FY2019 revenue, but slight positive impact on adjusted EBITDA loss. Included in the ARR, as at the FY2019, is £0.3m contributed by an existing customer that has recently been acquired by a third party and the Company is working with the new owner to continue the relationship and potentially to provide additional services.
The Company continues to have a strong pipeline of prospects, including deals commercially agreed but in the process of being contracted, and remains focused on driving organic growth during FY2020. Cash at 31 December 2019 was £1.0m.
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.
Keith Todd, Executive Chairman and CEO at KRM22, commented: "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."
For further information please contact:
KRM22 plc InvestorRelations@krm22.com
Keith Todd CBE, Executive Chairman and CEO
Kim Suter, CFO
finnCap Ltd (Nominated Adviser and Sole Broker) +44 (0)20 7220 0500
Carl Holmes / Matthew Radley
Alice Lane / 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' regulatory, market, technology and operations risk challenges and to manage their entire enterprise risk profile.
Capital markets companies' partner with KRM22 to optimize 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.
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.