leadf
logo-loader
viewKRM22 PLC

KRM22 signs up three new customers

The three new contract wins are expected to boost the risk management firm's recurring revenues to £4.3mln, rising to £4.4mln in 2020

KRM22 PLC - KRM22 signs up three new customers
The firm has signed up its first Asia Pacific client, a futures brokerage in Singapore, for its risk monitor application

KRM22 PLC (LON:KRM) has signed up three new customers for its risk management software, boosting its annual recurring revenues to £4.3mln.

The first new customer is a quantitative investment firm which will use the company’s market surveillance application, Irisium, to monitor market activity to increase transparency, integrity and confidence in their offering. KRM will also provide production services to assist the customer with daily alerts monitoring.

READ: KRM22 increases client base for new real-time service

The firm has also signed up its first Asia Pacific client, a futures brokerage in Singapore, for its risk monitor application, while the third customer will be the first in Australia to use the group’s Enterprise Risk Cockpit service.

Meanwhile, KRM said it had decided to reduce the scope of certain activities in 2020 which will result in a cost reduction of around £1mln which was not expected to impact revenues.

The company added that it had received £600,000 in research and development tax credits to supplement its funding in the near-term.

Looking ahead, KRM said it expected the market to be “more stable” following the “anticipated resolution of political uncertainties surrounding Brexit”, however until then discussions with strategic investors and decisions around acquisitions will be delayed until 2020.

KRM’s house broker finnCap reiterated their 100p target price for the group, saying that the new client wins will result in “consequently positive” effects on the firm’s 2020 earnings (EBITDA) and an improvement in its cash expectations.

Quick facts: KRM22 PLC

Price: 35.5 GBX

AIM:KRM
Market: AIM
Market Cap: £9.49 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of KRM22 PLC named herein, including the promotion by the Company of KRM22 PLC in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

KRM22's Keith Todd highlights 'good half year' as revenue climbs 31% to £2.3mln

KRM22 PLC's (LON:KRM) Keith Todd speaks to Proactive after announcing they've entered into a new £3mln convertible loan facility provided by its largest shareholder Kestrel Partners. Todd also talks through the firm's interim results to June which revealed total revenue of £2.3mln, up from...

on 18/9/20

2 min read