KRM22 plc (LON:KRM) today announced a trading update for the 12 month period to 31 December 2019.
The Company expects to report a FY2019 full year performance of Adjusted EBITDA loss in line with market expectations, from recognised revenue of approximately £4.0m (2018 £1.3m). A small number of contract signings were slightly delayed and have fallen into the new financial year, which the Company expects to close imminently.
The Company has ARR of £4.5m (2018 £3.3m) as at FY2019 at the 2019 constant exchange rate (£4.3m at current rates). This reflects an 18% organic growth rate for FY2019. Sterling’s recent strengthening has had a negative impact on contracted ARR as well as the FY2019 revenue, but slight positive impact on adjusted EBITDA loss. Included in the ARR, as at the FY2019, is £0.3m contributed by an existing customer that has recently been acquired by a third party and the Company is working with the new owner to continue the relationship and potentially to provide additional services.
The Company continues to have a strong pipeline of prospects, including deals commercially agreed but in the process of being contracted, and remains focused on driving organic growth during FY2020. Cash at 31 December 2019 was £1.0m.
The action taken during 2019 to reduce the cost base combined with the increase in ARR and strong sales pipeline has ensured the Company is on track to be adjusted EBITDA profitable and cash flow positive in 2020.
Keith Todd, Executive Chairman and CEO at KRM22, commented: “In the last twelve months we have seen KRM22 making significant progress. The ‘Global Risk Platform’, which is the central pillar of our strategy, is live and provides access to multiple offerings including our Enterprise Risk Cockpit, Market Risk and Regulatory Risk suite. We are confident that we are on course in 2020 to deliver on our commitments.”