KRM22 PLC (LON:KRM) has said it “remains encouraged by its pipeline of opportunities” into the second half of its current year, adding that it expects to close agreements with two further tier one banks.
In a trading update for the six months to June 30, 2020, the risk management software group said it “remains confident of meeting management expectations for the year” and that the approval its UK brokerage will add another £300,000 in annual recurring revenues (ARR) once complete.
For the trading period covered, KRM22 said it had been impacted by the effects of the coronavirus pandemic but had made progress with two new customer wins and cost and debt reduction. The company said the wins and cost reduction actions implemented had resulted in a “substantial reduction” in its adjusted (EBITDA) loss at the period end.
Total ARR in the period was £4mln after the loss of four institutional customers, worth around £300,000, which it said was due to a variety of market factors and the coronavirus.
KRM22 also said it has disputed £400,000 in ARR from two customers and has now negotiated a contract at a lower value with one client to retain them and assist their early-stage development. The company said it is continuing discussions with the second customer to try and find a commercial resolution for the remaining £300,000.
"The first half has been impacted by the effects of [coronavirus] but I remain encouraged by our customer engagement. We have managed through these recent turbulent times and are on track to deliver the full-year expectations. The outlook for our offering continues to be positive with a broad engagement of prospects in Europe, Asia and USA", KRM22 executive chairman and chief executive Keith Todd said in the trading update.