KRM22 PLC (LON:KRM) said it is “on track” to be profitable in 2020 following a strong uptick in revenues for 2019.
In a trading update for the year ended 31 December, the risk management specialist said revenues for the period had risen to £4mln from £1.3mln and its adjusted underlying loss (EBITDA) will be “in line with expectations”.
READ: KRM22 adds market risk capabilities to risk management platform
The company’s annualised recurring revenue (ARR) for the period was £4.5mln, up from £3.3mln in 2019, representing organic growth of 18%.
Looking ahead, KRM says it has a “strong pipeline of prospects” for the new year, including deals already agreed but in the process of being contracted.
While a number of contract signings had been “slightly delayed” in 2019, the firm expects these to close imminently in the new financial year.
KRM said that its “strong sales pipeline” coupled with cost reduction measures taken in 2019 meant it is now “on track to be adjusted EBITDA profitable and cash flow positive in 2020”.
"In the last twelve months we have seen KRM22 making significant progress”, said executive chairman and chief executive Keith Todd.
“The 'Global Risk Platform', which is the central pillar of our strategy, is live and provides access to multiple offerings including our Enterprise Risk Cockpit, Market Risk and Regulatory risk suite. We are confident that we are on course in 2020 to deliver on our commitments", he added.
In the wake of the update, analysts at KRM’s house broker finnCap retained their 100p target price and said they looked forward to the group’s final results in the next few months, saying they would provide the opportunity to demonstrate “further contract wins and continuation in the development of momentum”.
KRM22 shares were steady at 52.5p in early trading on Monday.
--Adds broker comment and share price--