KRM22 (KRM) AI Stock Analysis

• Market Cap: £15.01M
• Dividend Yield: N/A
• Average Volume (3M): 2.26K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.45
• Revenue Growth: 15.59%
• EPS Growth: 54.47%
• Country: UK
• Employees: 50
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.04
• Shares Outstanding: 36,156,990
• 10 Day Avg. Volume: 2,811
• 30 Day Avg. Volume: 2,259
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £43.81
• Price Target Upside: 5.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: 44.00p ▲(6.02% Upside)

KRM22's overall stock score is primarily impacted by its weak financial performance, characterized by ongoing losses and high leverage. However, strong technical indicators and positive corporate events provide some optimism. The valuation remains a concern due to negative earnings and lack of dividends.

KRM22 Business Overview & Revenue Model

Company Description

KRM22 Plc, together with its subsidiaries, develops and sells risk management software to the financial services industry in the United Kingdom, Europe, the United States, and internationally. The company offers Risk Cockpit, which shows enterprise risk profile in real time; Regulatory Navigator that brings out-the-box regulatory functionality covering market abuse, SM&CR, and financial crime; and Market Surveillance that offers analytics and contextual market surveillance tools to help capital markets firms identify and manage the potential risks of market abuse, fraud, and operational breaches. It also provides Individual Accountability Regime, which allows financial institutions to manage accountability throughout the firm; Digital Client Onboarding that provides capital market firms with the tools to make client onboarding; and Regulatory Reporting that enables capital market firms to comply with its regulatory reporting obligations across multiple jurisdictions. In addition, the company offers Enhanced Due Diligence, which enables firms to understand online reputational risks and evidence compliance; Regulatory training that helps regulated firms address their mandatory training requirements; Post-Trade Risk – Stress, which scales the type and amount of risk calculations performed against various limits and risk slides; and Post-Trade Risk – VaR that provides the unique view of multiple VaR calculations across the whole portfolio in a single place. Further, it provides At-Trade Risk, which offers P&L and exchange margin for clearing houses and members, traders, brokers, and other financial institutions that make decisions based on the management of risk; and Pre-Trade Risk, which helps combat time consuming and error prone processes by maintaining pre-trade limits in one centralized application. The company was founded in 2017 and is headquartered in London, the United Kingdom.

How the Company Makes Money

KRM22 generates revenue through a subscription-based model for its software solutions, where clients pay for access to its risk management platforms and analytics tools. Key revenue streams include recurring subscriptions from institutional clients, one-time setup fees for new customers, and consulting services that provide tailored risk management strategies. Additionally, KRM has formed strategic partnerships with financial institutions and technology providers, enhancing its service offerings and expanding its market reach, which significantly contributes to its earnings.

KRM22 Financial Statement Overview

Summary

KRM22 faces significant financial challenges with ongoing net losses and high leverage, risking financial stability. Despite revenue growth, profitability remains elusive due to high costs. Positive cash flow from operations is a bright spot, yet overall cash management needs improvement. Immediate actions to improve profitability and reduce leverage are essential for long-term viability.

Income Statement

The company has shown a positive revenue growth trajectory with revenue increasing from the previous year. However, it continues to operate at a net loss, with negative net profit and EBIT margins. The gross profit margin is strong, indicating efficiency in managing production costs, but the negative EBITDA and EBIT margins suggest challenges in overall cost management and profitability.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to negative stockholders' equity, indicating high leverage and financial instability. The equity ratio is negative, highlighting the company's liabilities exceed its assets. This presents a risk of insolvency if not addressed. Total assets have decreased, further stressing financial health.

Cash Flow

Positive operating cash flow indicates improved cash management, yet the free cash flow remains low due to significant capital expenditures. The free cash flow growth rate shows improvement from the previous year, but the ratio of operating cash flow to net income indicates inefficiencies in converting income to cash, given the consistent net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.77M	5.27M	4.27M	4.13M	4.59M
Gross Profit	5.60M	4.12M	3.32M	3.45M	4.15M
EBITDA	350.00K	-3.22M	-989.00K	-1.29M	-3.72M
Net Income	-1.29M	-4.62M	-3.10M	-3.33M	-5.49M
Balance Sheet
Total Assets	7.40M	7.81M	11.15M	14.20M	12.59M
Cash, Cash Equivalents and Short-Term Investments	1.03M	886.00K	1.90M	5.36M	1.97M
Total Debt	5.06M	4.65M	3.59M	3.66M	3.77M
Total Liabilities	9.63M	8.91M	7.97M	7.49M	7.64M
Stockholders Equity	-2.23M	-1.10M	3.18M	6.71M	4.95M
Cash Flow
Free Cash Flow	268.00K	-2.00M	-2.97M	-802.00K	-1.90M
Operating Cash Flow	1.42M	-879.00K	-2.12M	-47.00K	-942.00K
Investing Cash Flow	-1.16M	-1.16M	-848.00K	-755.00K	-961.00K
Financing Cash Flow	-122.00K	1.04M	-535.00K	4.19M	2.84M

KRM22 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KRM, the sentiment is Neutral. The current price of 41.5 is below the 20-day moving average (MA) of 43.40, below the 50-day MA of 41.85, and above the 200-day MA of 32.16, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 29.73 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:KRM.

KRM22 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INV	63 Neutral	―	-80.77	0.00%	―	-87.43%	-107.41%
KRM	58 Neutral	£15.01M	―		―	15.59%	54.47%
WCW	49 Neutral	3.62M	-1.43	-13.53%	5.88%	-0.73%	-790.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

KRM22 Corporate Events

KRM22 Reports Strong First Half 2025 Performance with Increased ARR

KRM22 plc has reported a positive trading update for the first half of 2025, with an increase in Annual Recurring Revenue (ARR) from £6.6m to £7.2m, driven by cross-sales and price increases. Despite some customer churn, the company maintains a strong sales pipeline and expects to meet market expectations by year-end. The cash balance improved to £1.4m, and KRM22 continues to focus on careful cash management while aiming to become a cash-generative and profitable business.

KRM22 Issues New Shares to Satisfy Deferred Acquisition Payment

KRM22 plc has issued 56,075 new ordinary shares to partially satisfy deferred consideration related to its acquisition of Object+. This move, representing 0.2% of the company’s issued share capital, is part of a strategy to conserve cash. The newly issued shares are expected to commence trading on AIM on 24 July 2025. This decision underscores KRM22’s strategic approach to managing its financial obligations while maintaining operational liquidity, potentially impacting shareholder interests and market positioning.

KRM22 Director Increases Stake in Company Shares

KRM22 plc announced that Sandy Broderick, a Non-Executive Director, purchased 22,974 ordinary shares of the company, increasing his beneficial interest to 34,739 shares, which represents 0.1% of the company’s issued share capital. This transaction underscores confidence in KRM22’s strategic direction and could positively influence stakeholder perception, potentially impacting the company’s market positioning and investor relations.

KRM22 Issues Restricted Stock Units to Employees and Directors

KRM22 plc announced the issuance of 2,025,147 Restricted Stock Units (RSUs) to its employees, including significant allocations to CEO Dan Carter and CFO Kim Suter. This issuance is part of a long-term incentive plan linked to the company’s FY24 financial performance and represents a strategic move to align employee interests with company growth. The RSUs will vest in five years and are not subject to future performance conditions, indicating a stable incentive structure. This development underscores KRM22’s commitment to fostering internal investment and aligning leadership with shareholder interests, potentially enhancing its market positioning and stakeholder confidence.

KRM22 Announces 2024 Annual Report and 2025 AGM Details

KRM22 plc has announced the posting of its Annual Report & Accounts for the year ended 31 December 2024, along with the notice of its 2025 Annual General Meeting (AGM). The AGM is scheduled to take place on 27 June 2025 in London. This announcement is significant as it reflects the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.

KRM22 Chairman Increases Stake, Reflecting Confidence in Risk Management Strategy

KRM22 plc announced that Garry Jones, the Non-Executive Chairman, has purchased 6,279 ordinary shares of the company, increasing his beneficial interest to 282,750 shares, representing 0.8% of the issued share capital. This transaction highlights confidence in the company’s strategic direction and could positively impact stakeholder perception, reinforcing KRM22’s commitment to enhancing value through its risk management solutions in the capital markets sector.

KRM22 Reports Strong Financial Growth and Strategic Advancements in 2024

KRM22 plc reported strong financial results for the year ending December 31, 2024, with a 22.2% increase in Annualised Recurring Revenue (ARR) to £6.6 million and a maiden adjusted EBITDA profit of £1.0 million. The company signed 12 new ARR contracts, launched the Risk Manager application, and implemented a cost savings program. Board changes included appointing Dan Carter as CEO and Garry Jones as Non-Executive Chairman. Post year-end, ARR grew to £7.4 million, and the company deferred interest payments on a convertible loan with Trading Technologies International, Inc. KRM22 is well-positioned for growth, with a strong sales pipeline and high client satisfaction, as it expands its market coverage into new asset classes.