KRM22 PLC (AIM:KRM, OTC:KRMCF)’s 2022 financial results show that the technology and software company is successfully ramping up its client base while leveraging its relationship with major shareholder Trading Technologies International.
Annualised recurring revenues (ARR) surged over 26% to £4.8mln, with new contracts in the year totalling £1.3mln, £700,000 of which was from brand new customers.
More than 20 new ARR contracts were signed in the year with 11 new customers.
This year-on-year ARR increase puts KRM22 on track to meet its £10mln ARR goal for 2026.
2022 also saw the launch of Limits Manager and Risk Manager, the first products launched with largest shareholder Trading Technologies International following a distribution agreement signed in 2021.
Recognised revenues increased by 4.9% to £4.3mln in 2022, while gross profit was slightly lower at £3.3mln compared to £3.5mln in 2021, with a gross profit margin of 77% compared to 84%.
Profit margin headwinds included foreign exchange conversion and additional hosting capacity requirements for a bigger client base.
Underlying (EBITDA) losses grew to £1.7mln compared to £700,000 in 2021, partially attributed to reorganisation costs and an overall increase in the cost base of the business during the financial year.
Operating losses, however, improved 13% to £2.6mln thanks to an £800,000 unrealised forex gain.
KRM22’s cash balance fell from £5.4mln to £1.9mln due to capitalised developments and interest payments.