Technology and software investment firm KRM22 PLC (LON:KRM) has begun talks with strategic investors to help fund the next phase of growth as it continues to experience strong demand for its products.
KRM22 said its sales pipeline has risen to a value of £1.5mln, which is expected to close by the end of the year. Of the total pipeline, the group anticipates 20% will close over the next 60 days.
“Demand for our products is strong and the ability to package our market risk suite, surveillance offerings and enterprise risk cockpit provides real competitive advantage as well as cost benefits to our customers,” KRM22 said.
While the deal pipeline has increased over the past two months no sales were closed during the summer months, meaning revenue and the associated cash flow is now expected to occur later in the second half of the year.
With £1.4mln of cash and term debt of £2.1mln as of 30 June, the group said it will continue to monitor cash “very carefully” and reduce the cost base to ensure the business delivers its full-year targets despite a slower sales cycle.
KRM22 has applied for R&D tax credits of £0.6mln, which are expected to be received in October and will provide funding to offset the impact of deal delays.
Chairman Keith Todd said: “Fourteen months after listing, we have assembled a competitive suite of products and built a large pipeline of prospects.
“Assets we have invested in are performing better under the KRM22 leadership.
“Strategically we are well placed and are in active discussion with a number of strategic investors to help fund the next phase of growth.”