Software group KRM22 PLC (LON:KRM) has been sprinting since its listed on AIM in April.
In 150 days, it has acquired three business, set up a partnership, added 27 customers and increased staff numbers to 80 from three.
WATCH: KRM22 "very busy" since IPO as it drives tool development in risk management
“We are ahead of where we expected to be, but I wish we were further ahead,” says Keith Todd, chairman, chief executive and founder.
The pace is not going to ease says the industry veteran, whose aim is to build a comprehensive tool that brings all the elements of risk management together in one place.
KRM22 has been inundated with enquiries both from owners of potential acquisitions and partners, he adds.
“People get it. There‘s so much complexity [in managing risk] due to the plethora of systems, cost and lack of consistency.
“The idea of having a proposition that has one portal to contain all risk tools that eliminate duplicates of data, people understand that.”
KRM22 has divided areas of risk into five domains: Market; regulatory; technical; operational and enterprise.
It is the enterprise domain that will house the cockpit light platform that will alert managers to potential risks to the business through a red, amber and green light system.
Cockpit controls
Beta testing starts towards the end of the year with a full launch scheduled for 2019.
All of the other areas will feed into and complement the enterprise platform to give a comprehensive overview of the threats.
Acquisitions and partnerships will be a key part of building the platform.
In June, KRM22 bought 60% of market surveillance specialist Irisium for £2.3mln.
Irisium’s software can manage complex trading patterns and high-frequency trading, things that have caused a number of high-profile losses in recent years.
READ: KRM22 happy with progress since April IPO
That was followed by the acquisition of an enterprise software team and associated assets run by Andrew Smart, while last month Chicago-based derivatives software group Prime Analytics was purchased.
A provider of real-time software to derivatives, futures and commercial energy companies, the acquisition cost US$7.5mln, with KRM22 raising £3.3mln through a placing at 101p to help with the cost.
Prime Analytics’ ProOpticus product is used by 13 institutional customers to manage risk across their multi-asset class portfolios and support proprietary trading.
Revenues up to £3mln
Annualised revenues are US$2.6mln with founder John Kelley, a former bond broker, staying on to help integrate the business.
Todd said the acquisitions so far are only the start of the work towards a Global Risk Platform.
More are likely in the New Year alongside other partnership arrangements, especially in the technology and operational space,
KRM22 now has £3m of recurring revenues but this is still only very early in the company's development says Todd.
Everything looks promising, with organic growth in the pipeline in addition to anything brought in by more deals.
“When we started we had three staff, now we have 80.
“Who knows what we can achieve in the next six months.”
Shares are 112p valuing the group at £18mln.