KRM22 PLC (LON:KRM) reported “significant progress” in the first six months of the year, growing revenue and controlling costs.
The risk management software firm, which floated in April last year, said its pipeline of new opportunities has increased over the period, but orders were not closed as expected during the summer months.
WATCH: KRM22 PLC reports growing pipeline of new opportunities
In the first six months of the year, KRM22 booked revenue of £1.8mln, up from £0.1mln a year ago.
At the end of June it had £4.1mln of annual recurring revenue (ARR) from 37 institutional customers, compared to £3.3mln and 26 institutions a year ago.
The acquisition of Object+ in May, providing a suite of pre-trade and at-trade market risk applications, generated £0.5mln of ARR, while the launch of the Global Risk Platform and Enterprise Risk Cockpit in March widened the product suite.
Despite the continued uncertainty around Brexit, the sales pipeline has continued to build a pipeline value of roughly £1.5m that management believes could close before the end of the year.
Executive chairman Keith Todd said the orders not closing over July and August will mean ARR will be lower.
“However the board and the executive team continue to monitor cash carefully and we have taken appropriate action on our cost base.”
After an operating loss of £4.4mln, there was cash and equivalents of £1.4mln in the bank at the end of June.
Finances have been beefed up with a £10mln loan facility agreed in the period, with an initial drawdown of £1.0m in April, and the cost base has been trimmed to ensure the business can deliver the expected outturn for the year
Todd said: “The growth in customer numbers and increase in recurring revenue demonstrates our commitment to investors to building a strong recurring revenue business.”