Trading Update and Notice of Interim Results

KRM22 plc

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

Trading Update and Notice of Interim Results

KRM22 plc, (AIM: KRM) the technology and software investment company that focuses on risk management for capital markets, today issues the following update on trading.

Further to the trading update announced on 11 July 2019, the Group's sales pipeline continues to build with a number of opportunities in advanced stages of negotiation and a pipeline value of approximately £1.5m which could close before the end of the year of which approximately 20% is expected to close over the next 60 days. Demand for our products is strong and the ability to package our market risk suite, surveillance offerings and enterprise risk cockpit provides real competitive advantage as well as cost benefits to our customers.

The pipeline has increased over the last two months reflecting new opportunities but also that sales did not close during the summer months. As a consequence, revenue and the associated cash flow is now expected to occur later in the second half of the year.

As announced on 11 July 2019 the Company had £1.4m of cash and term debt was £2.1m as at 30 June 2019. The Board and executive team continue to monitor cash very carefully and has continued to reduce the cost base with the objective of ensuring that the business can deliver the expected outturn for the year despite the slower sales cycle. The Company has applied for R&D tax credits of approximately £0.6m which are currently expected to be received in October and will supplement the funding of the Company and compensate for the slower sales cycle mentioned above. 

The Company expects to announce its interim results for the period to 30 June 2019 on Tuesday 17 September 2019.

Keith Todd, Chairman and CEO at KRM22, commented:

Fourteen months after listing, we have assembled a competitive suite of products and built a large pipeline of prospects. Assets we have invested in are performing better under the KRM22 leadership. Strategically we are well placed and are in active discussion with a number of strategic investors to help fund the next phase of growth.

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 / Kate Bannatyne / Matthew Radley

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.