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KRM22 PLC: DEEP DIVE
OVERVIEW

KRM22 covers risk management across capital markets with SaaS product portfolio

The company currently own two companies, Irisium and ProOpticus, but said in April that it had raised money to potentially fund more acquisitions
Risk management
OVERVIEW: KRM The Big Picture
"We’ve got a very big organic growth agenda while we build our global risk platform,” said KRM22's CEO Keith Todd

• Portfolio of risk management products for capital market firms

• Applications cover market, regulatory, technology and operations risk

• Products also cover hedge funds, financial institutions and traders

 

What KRM22 does

KRM22 PLC (LON:KRM) is a software and technology firm that provides risk management products to capital markets companies.

The group’s portfolio of applications covers market, regulatory, technology and operations risk.

What it owns

The company currently own two companies:

Irisium – provides analytics and contextual surveillance tools that help capital market firms identify and manage risks of market abuse, fraud and operational issues as well as meet regulatory compliance

ProOpticus – a real-time, multi-asset class, post-trade portfolio risk management system for hedge funds, financial institutions and traders. The system provides analysis from the micro to macro levels of granularity

Inflexion points

• In April, the company said it had raised £1.8mln via a share placing and subscription for new stock as it revealed it is in early talks to tap a venture debt provider for up to £10mln to fund potential acquisitions.

• In March, the company launched Enterprise Risk Cockpit – a real-time enterprise risk management application for capital markets companies.

 

• In November 2018, KRM22 said Irisium had secured a contract to provide its market monitoring and analytics application to Bitstamp, the largest cryptocurrency exchange by trading volume in Europe. Meanwhile, ProOpticus would provide its real-time post-trade portfolio risk management application to a large Futures Commission Merchant based in the Midwestern United States.

Blue Sky

Speaking to Proactive in March, KRM22’s chairman and chief executive Keith Todd said the business was now “up and running” with 27 customers and a team of 80 people worldwide.

Looking into the new year, Todd said the company had “a big agenda for 2019”.

“This is where we put the accelerator on … partnerships, product releases, we’ll also be driving customer growth. We grew [Irisium] by 40% in the seven months that we’ve had it. We’ve got a very big organic growth agenda while we build our global risk platform.”

For investors, Todd says KRM22 is a software-as-a-service (SaaS) business, and “that means recurring revenue … building an annuity of relationships with customers so you get good, predictable cash flow and you build your customer base.”

“The SaaS model is very powerful for investors. Recurring revenue, more profitable and higher margin in the long-term.”

Todd adds that going forward, the company will be prioritising communication to ensure that the KRM22 business model is “understood by investors”.

With shares trading around 85p as of 5 April 2019, KRM22 has a market cap of £14.17mln.

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KRM22 PLC Timeline

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Risk management
April 05 2019
The company currently own two companies, Irisium and ProOpticus, but said in April that it had raised money to potentially fund more acquisitions

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