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Tech

KRM22 making strides as recurring revenues grow

2018 saw the company complete three acquisitions, sign two distribution partnerships and clinch new customer contracts, to grow annualised recurring revenues to £3.3mln.

Risk management software firm KRM22 PLC (LON:KRM), which floated in April 2018, said its 2018 results represented just the first few steps on its journey.

It was a year in which the firm established its team, developed its Global Risk platform and confirmed the market opportunity.

The £1.3mln of revenue in 2018, from a standing start, included seven months of revenue from its Irisium acquisition and three months from the ProOpticus purchase.

READ KRM22 makes first acquisition

READ KRM22 snaps up Chicago-based futures outfit as platform development accelerates

Annualised recurring revenue at the end of 2018 stood at £3.3mln, which has since risen to £3.9mln following the completion of the acquisition of Object+ (announced today) – the company's fourth acquisition since listing.

#hedgefunds KRM22 acquires Object+ https://t.co/YWHwdfM05T

— HydroFunds (@HydroFunds) May 30, 2019

The company ended the year with £3.4mln of cash.

Having floated barely more than a year ago, the company is still getting into its stride and this was reflected in a loss before tax of £5.4mln for 2018.

Keith Todd, who is the chief executive officer and also the chairman of KRM22, said he was delighted in the progress the company had made in the 13 months since it had floated.

“This first set of annual results is just the start of the journey and the numbers represent just the first few months of our progress,” Todd said.

“We have established a very strong foundation for the business in terms of technical development of the Global Risk Platform, a quality customer base and an international team with deep subject matter expertise. We continually make strides towards our mission to bring increased visibility and lower cost risk management to capital market organisations," he added.

In a separate announcement, the company said chief operating officer Karen Bach, who is one of the founders of the company, would switch to a non-executive directorship at the beginning of July.

“My executive role was focused on building the foundations to allow us to scale-up quickly and these are now in place," she said.

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