Lombard Risk Management plc (LSE:LRM) (“Lombard Risk” or “The Company”), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce its interim results for the six months ended 30 September 2012.
Highlights
Revenue up 20% on same period last year at £7.7m (2011: £6.4m)
EBITDA of £2.0m (2011: £1.9m)
EBITDA after fully expensing all development costs was £0.1m (2011: £0.6m) profit before tax of £1.3m (2011: £1.8m)
Cash at period end of £1.5m (2011: £1.3m) with £2.0m debt (2011: £nil
Successful equity placing to raise £1.5m completed in June 2012
Investment in the development of COREP, COLLINE® modules and REFORM™
New transaction reporting platform, REFORM™, launched and sold as the foundation of solutions to satisfy Dodd-Frank and EMIR transaction reporting requirements
Interim dividend of 0.025 pence (2011: 0.020 pence) per Ordinary Share to be paid on 16 November to shareholders on the register as at 2 November 2012.
Current trading and outlook
Twenty COREP contracts signed to date for a mix of existing and new customers
Continuing trend towards greater regulation necessitating mandatory spend
Increase in reporting requirements around derivatives reform (e.g. Dodd-Frank and EMIR) creates opportunities to sell solutions using REFORM™
Additional modules increase the breadth of COLLINE, including a CLEARING (CCP) module which satisfies a mandatory requirement of many financial institutions
The Board is cautiously optimistic about the outlook and prospects of the business for the second half of the year