KRM22 plc

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

Trading Update

KRM22 plc, (AIM: KRM) the technology and software investment company, with a particular focus on risk management in capital markets, today issues the following trading update for the 12-month period ended 31 December 2025 ("FY2025").

The Company expects to report audited results for FY2025 in May 2026, and is pleased to report the following financial highlights*:

·      ARR at 31 December 2025 of £7.6m (FY2024: £6.6m, £6.4m at constant FX rates) - growth of 19% at constant FX rates

o  New contracted ARR in the year of £1.6m (FY2024: £1.7m)

·      Total revenue recognised of approximately £7.5m (FY2024: £6.8m) - growth of 11%

·      Adjusted EBITDA: £0.7m (FY2024: £1.0m)

·      Gross cash as of 31 December 2025 of £5.2m with net cash of £5.2m (FY2024: gross cash of £1.0m, net debt of £3.5m)

·      Successful £9.2m fundraise completed in November 2025

As reported in the trading update on 7^th August 2025, approximately 50% of Group ARR is derived from USD denominated contracts and, with a 7 per cent change in GBP:USD FX rates in FY2025, ARR at the start of FY2025 restated using a constant FX rate as at the end of FY2025 was £6.4m (£6.6m as previously reported using 31 December 2024 FX rates). 

Using constant exchange rates, the change in ARR during FY2025 was a net increase of £1.2m.  This was driven by £1.6m from cross-sales to existing customers and contractual price increases.  Specifically, cross-sales of the Risk Manager, Limits Manager, and Market Surveillance applications generated £1.1m, while contractual price increases across the same applications added another £0.5m.  This growth was partially offset by a churn of £0.4m, which was mainly attributed to two institutional customers who cancelled their license of the Market Surveillance application whilst, in both cases, singing new multi-year contracts to license other KRM22 applications.

With the successful fundraise completed in November 2025 raising £9.2m, KRM22 is now debt free and, following receipt of a three-year license fee payment from one its customers, the Company had a strong cash position at 31 December 2025 of £5.2m.  This cash will be utilised to support the growth strategy presented to investors, namely investment in additional sales, marketing and development resource to allow KRM22 to expand its existing suite of risk management applications to offer multi-asset solutions to the capital markets industry.  Importantly, post the fund raising, management is able to focus on growing the business and delivering on the Company's strategy, without the distraction of managing a complex balance sheet and operating within restrictive financial covenants.

Dan Carter, CEO commented: "KRM22 delivered a solid performance in 2025, with ARR growing 19% to £7.6m with new contracted ARR of £1.6m reflecting the continued demand for our applications.  With our year‑end cash position strengthened significantly to £5.2m, we enter 2026 with a strong sales pipeline, a robust balance sheet, and clear strategic priorities, positioning the business for continued growth."

*The financial expectations noted above are preliminary, and subject to year-end financial close and audit review processes.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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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