New Customer Contract

Source: RNS
RNS Number : 0603C
KRM22 PLC
29 August 2024
 

KRM22 plc

("KRM22", the "Group" or the "Company")

New Customer Contracts - ARR to £6.3m

 

KRM22 plc, (AIM: KRM) the technology and software investment company that focuses on risk management for capital markets, is pleased to announce the signing of a new customer contract for the Risk Manager product and two contract renewals.

 

The Risk Manager contract, worth over £0.7m over the three year life of the contract, is with a major Futures Commission Merchant ("FCM"). The Risk Manager product, which combines the offerings of the legacy At-Trade and Post Trade products, together with additional Value at Risk ("VaR") functionality, was launched at the start of 2024 and, since its launch, the Company has now signed two FCMs in the year to date generating Annual Recurring Revenue ("ARR") of £0.3m.

 

Additionally, the two contract renewals, both for three year terms, are with the Company's largest Market Surveillance and Risk Cockpit customers. The contract renewal for the Market Surveillance product increased ARR by £0.1m whilst the Risk Cockpit renewal saw a reduction in ARR by £0.1m with the customer continuing to license the product whilst not continuing with professional services which had formed part of the previous contract.

 

Following the announcement of these contracts, and as at the date of this announcement, the Group's ARR has seen a net increase, after accounting for the aforementioned new contract, contract renewals, and the impact of FX rates, by £0.2m to £6.3m (H1 2024: £6.0m). This underpins revenue forecasts for the year and is in line with existing market forecasts to reach £6.5m ARR by the end of 2024.

 

Dan Carter, CEO commented: "This contract win is testament to the strength of the recently launched Risk Manager application, whilst the renewals from two of our largest customers is validation of our continued excellent service levels. The growth in ARR to £6.3m keeps us right on track with year-end expectations and on our journey to create a £10m ARR, cash generative and profitable business."

 

 

For further information please contact:

 

KRM22 plc                                                                                         

Garry Jones, Chairman

Dan Carter, CEO

Kim Suter, CFO

 

InvestorRelations@krm22.com

Cavendish Capital Markets Limited (Nominated Adviser and Sole Broker)                       

Carl Holmes / Rory Sale (Corporate Finance)

Sunila de Silva (ECM)

 

+44 (0)20 7220 0500

 

 

The information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

 

About KRM22 plc

KRM22 is a closed-ended investment company which listed on AIM on 30 April 2018.  The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets.

 

Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management.  The Global Risk Platform provides applications to help address firms' trading and corporate risk challenges and to manage their entire enterprise risk profile.

 

Capital markets companies' partner with KRM22 to optimise risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha.

 

KRM22 plc is listed on AIM and the Group is headquartered in London, with offices in several of the world's major financial centres.

 

See more about KRM22 at KRM22.com

 

 

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