KRM22 (KRM) AI Stock Analysis

• Market Cap: £23.43M
• Dividend Yield: N/A
• Average Volume (3M): 2.74K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.59
• 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: 59,316,220
• 10 Day Avg. Volume: 5,399
• 30 Day Avg. Volume: 2,738
• PEG Ratio: 0.11
• Price to Book (P/B): -4.41
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 36.75
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: 39.00p ▼(-1.27% Downside)

KRM22's overall stock score is primarily impacted by its financial instability and ongoing losses, reflected in a low financial performance score. The technical analysis suggests a bearish trend, although the oversold RSI indicates potential for a rebound. The recent fundraising is a positive corporate event, providing financial flexibility and strategic growth opportunities. However, the negative valuation metrics and lack of earnings call data limit the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for KRM22's risk management solutions, suggesting a robust market position and potential for future expansion.

Cash Flow Management

Positive operating cash flow reflects effective cash management, providing the company with the liquidity needed to invest in growth and manage obligations.

Gross Profit Margin

A strong gross profit margin suggests effective cost control in production, which can support long-term profitability as the company scales.

Negative Factors

Net Losses

Ongoing net losses highlight challenges in achieving profitability, which could hinder long-term sustainability and investor confidence.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Equity Ratio

A negative equity ratio indicates financial instability, posing a risk of insolvency if not addressed, which could affect long-term operations.

KRM22 Business Overview & Revenue Model

Company Description

KRM22 (KRM) is a technology company specializing in risk management solutions for the financial services sector. The company focuses on providing advanced data analytics, risk assessment tools, and compliance software designed to help clients navigate complex regulatory environments and manage operational risks effectively. KRM's core products include a robust risk management platform that integrates data from various sources, offering real-time insights and analytics to enhance decision-making processes for financial institutions.

How the Company Makes Money

KRM22 generates revenue primarily through subscription-based models for its risk management software and analytics tools. Clients pay recurring fees for access to the platform, which can vary based on the tier of service and the scale of usage. Additionally, KRM may earn revenue from consulting services related to the implementation of its software solutions and ongoing support. Strategic partnerships with financial institutions and regulatory bodies enhance its offerings and contribute to its revenue by expanding its market reach and credibility. The company's ability to innovate and adapt its solutions to meet evolving regulatory demands also plays a crucial role in attracting and retaining clients.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.12M	6.77M	5.27M	4.27M	4.13M	4.59M
Gross Profit	5.70M	5.60M	4.12M	3.32M	3.45M	4.15M
EBITDA	-497.83K	350.00K	-3.22M	-989.00K	-1.29M	-3.72M
Net Income	-1.65M	-1.29M	-4.62M	-3.10M	-3.33M	-5.88M
Balance Sheet
Total Assets	8.13M	7.40M	7.81M	11.15M	14.20M	12.59M
Cash, Cash Equivalents and Short-Term Investments	1.36M	1.03M	886.00K	1.90M	5.36M	1.97M
Total Debt	5.31M	5.06M	4.65M	3.59M	3.66M	3.77M
Total Liabilities	10.33M	9.63M	8.91M	7.97M	7.49M	7.64M
Stockholders Equity	-2.20M	-2.23M	-1.10M	3.18M	6.71M	4.95M
Cash Flow
Free Cash Flow	1.80M	268.00K	-2.00M	-2.97M	-802.00K	-1.90M
Operating Cash Flow	1.80M	1.42M	-879.00K	-2.12M	-47.00K	-942.00K
Investing Cash Flow	-1.06M	-1.16M	-1.16M	-848.00K	-755.00K	-961.00K
Financing Cash Flow	-3.00K	-122.00K	1.04M	-535.00K	4.19M	2.84M

KRM22 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KRM, the sentiment is Negative. The current price of 39.5 is below the 20-day moving average (MA) of 39.60, below the 50-day MA of 41.74, and above the 200-day MA of 36.96, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 22.25 is Positive, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KRM.

KRM22 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
INV	63 Neutral	―	-87.18	-0.97%	―	-87.43%	-107.41%
WCW	58 Neutral	£5.64M	-2.23	-12.64%	―	-0.73%	-790.70%
KRM	48 Neutral	£23.43M	-8.62	―	―	15.59%	54.47%

KRM22 Corporate Events

KRM22 Issues New Shares to Settle Acquisition Payment

KRM22 plc has issued 46,729 new ordinary shares to partially satisfy deferred consideration for its acquisition of Object+. This move aims to conserve cash within the company while maintaining its financial commitments. The new shares, representing 0.1% of the issued share capital, are expected to commence trading on AIM on 14 November 2025. This strategic decision reflects KRM22’s ongoing efforts to manage its resources effectively and maintain its market position in the risk management sector.

KRM22 Raises £9.2 Million to Enhance Risk Management Focus

KRM22 has successfully raised approximately £9.2 million through a placing and subscription of shares at a slight discount to market price. The funds will support the company’s focus on risk management in capital markets. A General Meeting is scheduled for shareholder approval, with the new shares expected to commence trading on AIM in early November. Major shareholders, Kestrel Investment Partners and Canaccord Genuity, participated in the fundraising, highlighting confidence in KRM22’s strategic direction.

KRM22 Announces £9.2 Million Fundraising to Expand Risk Management Solutions

KRM22 plc has announced a proposed placing and subscription to raise £9.2 million by issuing new ordinary shares at 40 pence each. The funds will be used to expand its risk management applications beyond the ETD space, repay a £5.7 million debt facility with Trading Technologies, and support sales and marketing efforts to boost Annual Recurring Revenue (ARR). The company has shown growth in ARR and revenue in the first half of 2025, indicating a positive trajectory in its financial performance. The fundraising is expected to enhance KRM22’s market positioning by broadening its multi-asset risk management solutions, benefiting stakeholders through increased operational capabilities and financial flexibility.

KRM22 Reports Strong Growth in H1 2025 with Increased ARR and Revenue

KRM22 plc announced its unaudited interim results for the first half of 2025, reporting a 20% growth in Annualised Recurring Revenue (ARR) to £7.2 million and a 10.6% increase in total revenue to £3.6 million. The company achieved an adjusted EBITDA profit of £0.4 million, despite a pre-tax loss of £1.6 million. The growth was driven by strong demand for its Risk Manager and Limits Manager applications, with significant cross-selling to existing clients. KRM22’s strategic focus on integrating these applications has been validated by the increased adoption among Futures Commissions Merchants. The company’s proactive response to market volatility and disciplined cost control have positioned it for continued growth and profitability.