KRM22 PLC (AIM:KRM, OTC:KRMCF) said it has started 2022 well, with the new partnership with Trading Technologies International (TT) "progressing very well".
The capital markets risk software company’s final results for 2021 showed £5.4mln of gross cash at the end of the year after the direct strategic investment by futures industry-focused TT, which took a 25% stake in December.
Although most of the key headline numbers had been reported in a trading statement in January, the results revealed that 69% of customers are now contacted under a master services agreement on software-as-a-service (SaaS) contracts of two to five years with increased annual recurring revenue over the term of the contract.
The company has £3.8m of annual recurring revenue and 28 institutional customers on multi-year contracts.
Executive chairman Keith Todd said 2021 had been a challenging year for KRM22 but “the financial performance masks the significant progress the company has made strategically, with significant expansion of offerings on the Global Risk Platform and the continued migration of many customers to new multi-year contracts as well as new revenue contract wins”.
“We have started 2022 with a strong balance sheet and, most importantly, I'm pleased that the TT partnership is progressing very well with positive reaction from prospects and customers at the recent FIA global conference at Boca Raton clearly visible," Todd added.
Stephen Casner, who moved from president to chief executive officer as part of the TT deal, plans to strengthen sales and marketing resources as well as continue investment in the Global Risk Platform and KRM22 risk products.
He said: “We are currently working hand in hand with our new distribution partner and will deliver exciting and proven risk technology to their customers before mid-year in a ‘frictionless’ method, matching exactly how these customers want to buy.
“We will allow TT users to adopt KRM22 technology without having to wait for long-term implementations, risk will be available to them at the ‘touch of a button’.
“This ability quickly validates the value proposition our technology brings and creates a ‘stickiness’ for our applications that will pave the way for these new customers to explore and use more and more of our Global Risk Platform.
“While we expect 2022 to be a year of transformation for KRM22, it is coming from a sound basis of great technology, expert resources and enriching partnerships.”