KRM22 PLC (AIM:KRM, OTC:KRMCF) will focus on driving sales and reducing churn as the technology and software investment company said it is on the right track to achieve internal targets set at the start of the year.
The comments came as it reported annualised recurring revenue (ARR) for the six months to 30 June rose to £4.1mln from £3.7mln at the same time last year.
Additionally, the group reported a new contracted ARR of £700,000, up from £300,000, while the post-period ARR increased even further to £4.4mln.
“Our success in the first half of the year has been driven by the five key initiatives that we defined at the start of the year,” said chief executive Stephen Casner.
“These initiatives have seen an increase in ARR, a reduction in the level of customer churn and an improvement in the underlying processes that will support KRM22's continued growth.”
As a result of challenging market conditions, the company said it will drive revenue through its sales channels while managing costs to ensure cash is available to achieve its goals.
KRM22 said it is on the right track to achieving internal targets set at the start of the year, which include achieving an ARR of £10mln, as well as positive underlying earnings (EBITDA) and cash flow.
However, due to “the amount of variables” in its revenue plan, it is unclear when the targets will be achieved.