Drumz (ACRM) AI Stock Analysis

• Market Cap: £1.68M
• Dividend Yield: N/A
• Average Volume (3M): 919.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.29
• Revenue Growth: 7.74%
• EPS Growth: 51.18%
• Country: UK
• Employees: 23
• Sector: General
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 239,618,260
• 10 Day Avg. Volume: 901,883
• 30 Day Avg. Volume: 919,926
• PEG Ratio: 0.07
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -6.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: 0.70p ▲(0.00% Upside)

Drumz faces significant financial challenges with ongoing losses and negative cash flows. However, recent strategic initiatives, such as focusing on core cybersecurity operations and securing new contracts, provide a positive outlook. The technical indicators suggest bearish momentum, and the valuation is unattractive due to negative earnings.

Positive Factors

High Gross Profit Margin

A 96.2% gross margin implies the core CRM product has very low direct costs, enabling strong operating leverage as revenue scales. Over the next 2-6 months this supports reinvestment in R&D, sales and product development without immediate margin pressure if operating expenses are controlled.

Low Financial Leverage

Minimal leverage reduces bankruptcy and interest-rate risk, giving Drumz flexibility to fund strategic initiatives, absorb shocks, or raise capital on better terms. This balance sheet strength supports medium-term execution of product focus and contract delivery strategies.

Recurring Revenue & Partner Channels

A subscription model creates predictable, recurring revenue and higher lifetime value. Established partnerships and resellers broaden distribution and lower customer acquisition costs, improving unit economics and enabling durable, scalable growth over multiple quarters.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows erode financial flexibility, forcing reliance on external financing or equity issuance. This constrains investment in customer acquisition and product initiatives and elevates refinancing and dilution risk over the medium term.

Ongoing Losses and Weak Profitability

Inability to convert high gross margins into positive EBIT and net income signals structural cost or scale issues. Continued operating losses limit the company's ability to self-fund growth, may pressure pricing or margins, and complicate long-term returns for shareholders.

Negative Return on Equity

Negative ROE indicates the company is not generating shareholder returns from invested capital. Over several quarters this can reduce investor confidence, limit access to favorable capital, and signal inefficient capital allocation that undermines long-term value creation.

Drumz Business Overview & Revenue Model

Company Description

Acuity RM Group Plc engages in the provision of risk management software and services company with particular focus on the governance, risk, compliance (GRC) market. Its product, branded under the name STREAM, is a governance, risk and compliance software platform, which collects data about organizations to improve business decisions and management. The company was founded on March 22, 1935 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Drumz generates revenue through a subscription-based model for its CRM software, charging businesses on a monthly or annual basis for access to its platform. Additional key revenue streams include fees for premium features, such as advanced analytics and custom integrations, as well as professional services like training and support. The company has established significant partnerships with other technology providers and resellers, which enhance its distribution channels and provide opportunities for cross-selling. These collaborations contribute to its earnings by expanding its market reach and increasing customer acquisition.

Drumz Financial Statement Overview

Summary

Drumz shows revenue growth but struggles with profitability and cash flow. Despite a strong gross profit margin and low leverage, negative net profit and cash flows indicate financial instability.

Income Statement

Drumz has shown some revenue growth, with a 3.1% increase in the latest year. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin is high at 96.2%, suggesting strong core operations, but the overall financial health is impacted by significant losses.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.048, indicating minimal leverage, which is a positive sign. However, the return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The free cash flow to net income ratio is high, but this is due to negative net income, which is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23M	2.13M	1.37M	-25.00K	-139.00K	-596.00K
Gross Profit	0.00	2.05M	1.12M	-25.00K	-139.00K	-596.00K
EBITDA	-578.00K	-983.00K	-902.00K	-341.00K	-422.00K	-757.00K
Net Income	-940.00K	-1.27M	-1.34M	-341.00K	-422.00K	-757.00K
Balance Sheet
Total Assets	6.58M	6.97M	6.99M	1.27M	1.60M	1.58M
Cash, Cash Equivalents and Short-Term Investments	418.00K	606.00K	100.00K	222.00K	561.00K	491.00K
Total Debt	0.00	183.00K	319.00K	0.00	0.00	0.00
Total Liabilities	2.62M	3.17M	2.91M	47.00K	52.00K	60.00K
Stockholders Equity	3.95M	3.80M	4.09M	1.23M	1.55M	1.52M
Cash Flow
Free Cash Flow	-1.29M	-446.00K	-1.01M	-339.00K	-226.00K	-176.00K
Operating Cash Flow	-1.29M	-196.00K	-1.01M	-339.00K	-226.00K	-176.00K
Investing Cash Flow	-530.00K	-250.00K	-172.00K	0.00	-125.00K	-500.00K
Financing Cash Flow	383.00K	952.00K	1.06M	0.00	421.00K	1.07M

Drumz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ACRM, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.85, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 18.19 is Positive, neither overbought nor oversold. The STOCH value of 38.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ACRM.

Drumz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ACRM	50 Neutral	£1.68M	-1.13	-22.37%	―	7.74%	51.18%
BIRD	48 Neutral	£9.62M	-3.44	-32.98%	―	-9.19%	4.69%
ZOO	47 Neutral	£9.83M	-1.88	-32.23%	―	-7.72%	54.13%
CHSS	44 Neutral	£6.16M	-1.46	-389.90%	―	-3.87%	9.43%
EXR	43 Neutral	£1.84M	-0.57	-75.42%	―	-38.77%	-1.67%
SATS	40 Underperform	£36.41M	-1.92	-438.39%	―	―	―

Drumz Corporate Events

Acuity RM Group Divests Real Estate Holding to Focus on Cyber Security

Acuity RM Group plc has announced the sale of its entire shareholding in KCR Residential REIT plc, generating £164,410 gross. The company plans to reinvest the proceeds into its core business of cyber security risk management software, STREAM®, to enhance its product offerings and strengthen its market position. This move aligns with Acuity’s strategic focus on becoming a leading platform in the cyber risk management sector, leveraging increased market awareness due to recent high-profile cyber attacks.

The most recent analyst rating on (GB:ACRM) stock is a Hold with a £1.00 price target. To see the full list of analyst forecasts on Drumz stock, see the GB:ACRM Stock Forecast page.

Acuity RM Group Secures Key Contract with European Defence Contractor

Acuity RM Group’s subsidiary, Acuity Risk Management Limited, has secured a contract with a leading European defence contractor to provide its Vendor Management Hub (VMH) software and services. This contract is expected to open further commercial opportunities for Acuity, enhancing its presence in the cyber-security sector of the Governance, Risk and Compliance market. The availability of VMH on the AWS Marketplace is a strategic move to expand Acuity’s distribution channels, accelerating its global reach and revenue growth.

The most recent analyst rating on (GB:ACRM) stock is a Hold with a £1.00 price target. To see the full list of analyst forecasts on Drumz stock, see the GB:ACRM Stock Forecast page.