KRM22 narrows losses in first half
Technology and software investment KRM22 reported total revenue of £2.3m in its first half on Wednesday, up from £1.8m year-on-year.
The AIM-traded firm said it recognised organic growth in revenue of 19% for the six months ended 30 June.
Undisputed annualised recurring revenue totalled £4m at period-end, down from £4.1m in the first half of 2019, while the company narrowed its adjusted EBITDA loss to £0.3m from £2.4m.
Its loss before tax was £1.2m, shrinking from a first-half loss of £4.4m a year earlier, while cash and cash equivalents at period-end stood at £0.8m, down from £1.1m at the start of the period.
KRM22 raised gross proceeds of £1.3m in the period through a placement and subscription for new ordinary shares, and converted £1.3m of debt and liabilities into equity, following the acquisition of the remaining 40% stake in Irisium.
On the operational front, KRM22 said it had worked through the Covid-19 crisis with it being fully operational from home as a result of internal infrastructure and processes implemented from launch.
It also implemented a group restructure, with annual cost savings of £0.6m.
Since the period ended, the company said undisputed annualised recurring revenue had grown to £4.3m, as it also received a research and development tax credit of £0.1m.
The firm also entered into an agreement for a new £3m loan facility arranged by Kestrel Partners, to replace the existing Harbert debt facility.
“The first half has naturally been impacted by the effects of Covid-19, with extending sales cycles and delays in decision making but we remain encouraged by our customer engagement and the pipeline remains strong which we are looking to convert in the second half of the year,” said executive chairman and chief executive officer Keith Todd.
“We have managed through these recent turbulent times and are on track to deliver full year market expectations.”
Todd said the new convertible loan facility, with one of its substantial shareholders, would strengthen the capital base of the company as it drove growth.
“The outlook for the second half of the year continues to be positive with a broad engagement of prospects in Europe, Asia and North America.”
At 0846 BST, shares in KRM22 were flat at 38p.