viewKRM22 PLC

KRM22 managing risk in 2020 through focus on organic growth


  • 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
Risk management

Quick facts: KRM22 PLC

Price: 36.5 GBX

Market: AIM
Market Cap: £9.75 m


What KRM22 does

KRM22 PLC (LON:KRM), which floated in May 2018, 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 owns:

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

• Object+ - a risk management and post-trade services firm focused on capital markets


How it is doing

Final results for 2019 showed KRM22 booked revenue of £4mln, up from £1.3mln a year ago, with annualised recurring revenue growth of 21% to £4.5mln compared to 10% a year earlier.

Adjusted (EBITDA) losses narrowed to £3.1mln from £3.3mln.

Over the year, six new partnerships were signed, covering client onboarding, enhanced due diligence, online training, individual accountability regime and regulatory reporting.

Post year-end, in May, the company completed a £1.145mln fundraising at a price of 30p each, a 28% premium to its closing price the day before the placing was announced. The funds were to provide additional working capital to support the growth strategy.

In a trading update for the six months to June 30, 2020, the company said it “remains confident of meeting management expectations for the year” and that the approval its UK brokerage will add another £300,000 in annual recurring revenues (ARR) once complete.

Total ARR in the period was £4mln after the loss of four institutional customers, worth around £300,000, which it said was due to a variety of market factors and the coronavirus.


What the boss says - executive chairman and chief executive Keith Todd

"The first half has been impacted by the effects of [coronavirus] but I remain encouraged by our customer engagement. We have managed through these recent turbulent times and are on track to deliver the full-year expectations. The outlook for our offering continues to be positive with a broad engagement of prospects in Europe, Asia and USA".

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on 18/9/20

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