Positive pipeline conversion & £1m pa cost savings
Despite the current economic and political uncertainties, KRM22 said this morning that it had made encouraging progress since the Sept interims – signing 3 new contracts & 1 renewal, alongside £1m pa of cost savings (no turnover impact) and the receipt of a £0.6m R&D tax credit.Together this has not only lifted our FY20 EBITDA, net debt and valuation to +£25k (vs -£0.9m before), £3.06m (£4.0m) to 90p/share (or 3x FY20 ARR adjusted for minorities, vs 70p) respectively. But also, should enable the business to become cashflow positive in FY21, a full 12 months earlier than previously envisaged.
Likewise Annualised Recurring Revenues (ARR) have climbed to £4.3m (vs £4.1m June & £3.3m Dec’18), further rising to £4.4m in FY20 – representing 18% YTD LFL growth. The 1st customer, a quantitative investment firm, will use KRM22's surveillance application (Irisium) to monitor market activity to increase transparency, integrity and confidence in their offering. The 2nd, a futures brokerage in Singapore, will be the first in AsiaPac to deploy KRM22's Risk Monitor software – with the 3rd being the first Australian client to adopt the Enterprise Risk Cockpit.
Finally due to the macro headwinds, the Board has decided to postpone any large investments and M&A until 2020. Instead concentrating on organic growth, reducing overheads and shortening the timescale to cashflow breakeven.
KRM22 PLC. KRM22 plc is a United Kingdom-based closed-ended investment company. The Company's objective is creating value for its investors through the acquisition of or investment in and subsequent growth and development of target in the technology and software sector. The Company may invest or acquire globally, including emerging markets, and its short-term focus is on the United Kingdom, Europe, North America and Asia.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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