KRM22 PLC (AIM:KRM, OTC:KRMCF), the technology and software investment company focusing on risk management in capital markets, has reached a new milestone with its annual recurring revenue (ARR) surpassing £5mln for the first time since its IPO in 2018.
This represents a 22% year-on-year increase.
The AIM-listed company was able to bolster its ARR through new contracts for its Limits Manager product with four of the top 10 Futures Commission Merchants (FCMs).
Three contracts were obtained through direct sales, while one came via the distribution agreement with Trading Technologies International (TT).
KRM22 is now in advanced contract negotiations for additional Limits Manager and Risk sales opportunities, both directly and through the TT distribution agreement.
Upon signing, two more top-tier FCMs are expected to adopt the Limits Manager product.
When KRM22 releases its financial results in September, it is expected to announce realised revenues of £2.4mln compared to £1.9mln in the first half of 2022.
Per today’s trading update, the company's cash balance as of June 30, 2023, was £1.4mln compared to £1.9mln in 2022, with net debt increasing from £1.1mln to £2.1mln.
KRM22 chief executive Stephen Casner called the interim revenues “a significant milestone” on the company’s “journey to create a £10mln ARR, cash-generative and profitable business”.
“The adoption of our Limits Manager product by top-tier banks and FCMs demonstrates that our integrated approach to help our customers create alpha through better risk management is exactly what our industry is demanding," he added.