KRM22 PLC (LON:KRM) has signed a partnership with quantitative solutions provider Quant Foundry to integrate risk models into its Enterprise Risk Cockpit (ERC), while also announcing a trading update for its first half.
The risk management software firm said the seven models from Quant would provide customers using the ERC with “more sophisticated analytics” and allow them to view quantitative and qualitative risk assessments alongside each other through customised dashboards.
Keith Todd, KRM22’s chairman and chief executive, said the partnership would provide a “superior” method for companies to “objectively assess risks across their organisation, reducing the complexity of managing their enterprise risk profile”.
“Significantly bigger” second half expected
In a separate announcement, KRM22 reported that in the six months ended 30 June its annual recurring revenue (ARR) had risen 24% since the end of 2018 to £4.1mln, in line with management expectations.
The group increased its number of customers to 37 from 26 at the end of 2018, while cash at the end of the period was £1.4mln with term debt of £2.1mln.
Looking ahead, the company said its sales pipeline was “strong” with contracts and several proposals in negotiation, adding that the second half of the year is expected to be “significantly bigger”.
“Our priority for [the second half] is to drive recurring revenue growth through our strong sales pipeline of cross-selling opportunities and by attracting new customers”, Todd said, adding that KRM22 was also aiming to conclude discussions with “potential strategic industry investors”.
In a note, analysts at KRM22’s ‘house’ broker finnCap reiterated their 100p price target on the stock and said they looked forward to “continued momentum” from the company following a “positive start” to 2019.
In early trading on Thursday, KRM shares were steady at 76.5p.
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