KRM22 PLC (LON:KRM) has reported strong growth in recurring revenues in 2019 as its recent acquisitions begin to bear fruit.
For the year ended December 31, 2019, the software firm reported annualised recurring revenues (ARR) growth of 21% compared to 10% a year earlier, while total revenues in the period rose to £4.1mln from £1.3mln.
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The firm’s adjusted (EBITDA) loss also narrowed, to £3.1mln from £3.3mln, and over the year it said it signed six new partnerships covering client onboarding, enhanced due diligence, online training, individual accountability regime and regulatory reporting.
KRM22’s revenues were boosted in the year by £1.3mln in post-acquisition contributions from Irisium and ProOpticus respectively.
Looking ahead, KRM22's executive chairman and chief executive Keith Todd said while risks and uncertainties related to the coronavirus pandemic were continuing to evolve, the firm was confident that it will “deliver on our growth and adjusted EBITDA profit plans”.
"We made significant progress in 2019 launching the KRM22 Global Risk Platform with its range of market risk and regulatory services. In the later part of 2019, we suspended our acquisition activity and focussed on organic growth in which we are continuing with this plan through 2020 and the [coronavirus] crisis”, Todd added in the results statement.
“I am pleased to say that the business is operating very effectively working from home as a result of the automation and flexible working we established from day one. We are confident of further progress with new and existing customers providing organic growth and remain confident of meeting management expectations", he concluded.