KRM22 Positive EBITDA by H2 say finnCap

KRM22 plc (LON:KRM) Final results for the year to December 2019 have been largely superseded by several trading updates, the consolidation of the remaining stake in Irisium, and last week’s £1.2m net placing at 30p. Nevertheless FY19, the first full year for execution of KRM22’s risk management solutions platform in capital markets saw net organic ARR growth of 21%, and a further £0.5m acquired with the acquisition of Object+. Six new partnerships and the March 2019 launch of the Global Risk Platform and Enterprise Risk Cockpit offer momentum into FY20, and the group has demonstrated a foundation of progress and opportunity. Net debt of £0.9m at year end included £1.1m gross cash, with current gross cash of £1.4m and net debt headroom of £0.5m which the board does not expect to call upon. We continue to expect development of positive adjusted EBITDA by 2H20, accompanied by positive cashflow which will subsequently be managed to neutral to afford continuing investment. We look forward to further contract win newsflow to demonstrate continuing ARR development.

Source: finnCap – Andrew Darley, Director of Research
Hayley Palmer, Research Analyst

KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.

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