KRM22 PLC (AIM:KRM, OTC:KRMCF) is well underway to achieving its £10 million annual recurring revenue (ARR) target, the AIM-listed technology and software investment company said in today’s interim earnings call.
KRM22 grew its ARR by 19.5% year on year to £4.9 million while recognising £2.4 million in total revenue.
Post-period ARR has since increased to £5.1 million.
Underlying losses increased from £700,000 to £1 million, will losses before tax nearly doubling to £2.3 million.
Cash and cash equivalents as of 30 June 2023 were £1.4 million, down from £1.9 million at the end of 2022.
The group completed a comprehensive debt refinancing arrangement with Trading Technologies International in which £4 million of the £5 million facility was drawn down.
Other operational highlights saw the group keep customer churn to just £100,000 (equivalent to the first half of 2022) while signing new contracts with top-10 futures commission merchants.
KRM22 also conducted the first sale of its Limits Manager product through the Trading Technologies channel.
Commenting on the results, chief executive Stephen Casner, stated: "With ARR currently at £5.1 million, our success in the first half of 2023 in growing ARR and maintaining a low level of customer churn continues to show progress towards our key goal of building a £10 million ARR SaaS business.
“Our Limits Manager product provided strong results in this period through both our direct selling and TT distribution partnership and is quickly becoming an industry-leading application.
“Our new Risk Manager product is now being introduced to major customers and we expect its success to accelerate our ARR growth throughout 2024 with a strong pipeline of sales opportunities to drive this growth."