# KRM22 remain confident of meeting management expectations

- Link: https://www.directorstalkinterviews.com/krm22-remain-confident-of-meeting-management-expectations/412823622
- Published: 2020-05-21T07:09:29+01:00
- Author: Giles Arbor

**KRM22 plc **([LON:KRM](https://www.directorstalkinterviews.com/company/krm22-plc/krm.l)),
the technology and software company focused on risk management in capital markets,
has today announced its audited results for the year ended 31 December 2019. 

**Financial highlights**

·    Total revenue recognised of £4.1m (2018 – £1.3m, based on seven months and 
three months post-acquisition revenue from Irisium and ProOpticus respectively)

·    Annualised Recurring Revenue (ARR):

 * Current undisputed ARR of £4.0m (May 2020)
 * ARR at 31 December 2019 of £4.3m (2018 – £3.3m)
 * Net organic ARR growth of 21% in the year (2018 – 10%) including 33% ARR growth
   from institutional customers
 * Acquired ARR growth of £0.5m from the acquisition of Object+

·    Adjusted EBITDA loss of £3.1m (2018 – loss of £3.3m)

·    Loss before tax of £7.3m (2018 – loss of £5.4m)

·    Cash at 31 December 2019 of £1.1m (2018 – £3.4m)

·    Net cash outflow of £2.3m (2018 – inflow of £3.3m)

·    Raised gross proceeds of £2.8m through a placement and subscription for new
ordinary shares

·    Agreed a £10.0m loan facility with an initial drawdown of £1.0m in April 2019
and a committed £0.5m drawdown in 2020 available at the Company’s discretion

**Operational highlights**

·    Acquisition of Object+ in May 2019 to provide a suite of “pre-trade” and “at
trade” market risk applications to complement existing “post-trade” applications

·    Global Risk Platform and Enterprise Risk Cockpit launched in March 2019 and
first significant customer of Enterprise Risk Cockpit in October 2019

·    Six new partnerships signed covering client onboarding, enhanced due diligence,
online training, individual accountability regime and regulatory reporting

**Post Year end matters**

·    Acquired the remaining 40% non-controlling interest in Irisium from Cinnober
on 16 April 2020

·    Raised gross proceeds of £1.3m in a placing and subscription of shares in May
2020

·    Current cash position of £1.4m

> **Keith Todd, Chief Executive Officer and Chairman of KRM22 plc, commented:**
> “We made significant progress in 2019 launching the KRM22 Global Risk Platform
> with its range of market risk and regulatory services.  In the later part of 2019,
> we suspended our acquisition activity and focussed on organic growth in which 
> we are continuing with this plan through 2020 and the ‘COVID’ crisis.  I am pleased
> to say that the business is operating very effectively working from home as a 
> result of the automation and flexible working we established from day one.  We
> are confident of further progress with new and existing customers providing organic
> growth and remain confident of meeting management expectations.”

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