KRM22 PLC (AIM:KRM, OTC:KRMCF) has a story as powerful as ever, said stockbroker finnCap in a note reacting to the company’s interim results.
The software company saw its annualised recurring revenue (ARR) for the six months to June 30, 2022, rise to £4.1mln. up from £3.7mln over the same period 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.
KRM22 chief executive Stephen Casner told investors that the company’s success was driven by the five key initiatives it had set out earlier in the year.
Analyst Andrew Darley at finnCap commented: “Having invested in sales capacity and product development with the balance sheet strength provided by TT’s investment in FY21, the story remains as powerful as ever, and enthusiasm will derive from continue proof of execution."
“[FinnCap] forecasts and target price remain under review as we await the timing of revenue benefits from multiple sales channels," he added.
In the results statement, 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 said it is unclear when the targets will be achieved.