London, UK – 15th October 2013: Lombard Risk Management plc (LSE: LRM), 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 2013.
John Wisbey, Chief Executive Officer, commented:
“The first six months have seen further positive progress across the group, although recognised revenues have been impacted directly by
delays to new regulatory products. This has led to a record order book as we move into the second half of the year. 45 clients have contracted to license our COREP product including 16 new clients. To meet those orders the company has had to increase staffing levels to ensure that product deadlines are met. We are optimistic about the second half of the year owing to the record contractual
order book and other wins where our software has been selected. Based on business already contracted or won, and assuming no
further regulatory delays on COREP or other factors causing delays to project delivery, we believe we have already won enough business for the full year’s revenues to equal or exceed last year’s full year revenue number of £16.8m. Consequently, any business awarded to us and implemented in the next 51⁄2 months will represent revenue growth for the year as a whole. This gives us continued confidence in meeting the full year revenue forecasts in the market.”
Highlights
Revenue of £7.3m (2012: £7.7m) down 5%, offset by record order book of contracted revenue at £5.4m (2012: £2.8m)
45 COREP contracts signed with 16 being for new names
EBITDA of £0.1m (2012: £2.0m) following increased staffing levels to deliver additional contracts
Loss before tax after fully expensing all development costs of £0.9m (2012: profit £0.1m)
Cash at period end of £1.8m (2012: £1.5m) with reduction in debt to £1.0m (2012: £2.0m)
Equity placing to raise £2.6m completed in July 2013
Continued investment in the development of COREP, COLLINE® Optimisation module and the next generation REPORTER
Interim dividend of 0.030 pence (2012: 0.025 pence) per Ordinary Share
Current trading and outlook
October 2013 – News from Lombard Risk Page 1COREP delivery to be heavily weighted to H2 in the current financial year. Further COREP contracts being negotiated.
European Banking Authority’s Financial Reporting (FINREP) regulations are in scope for many UK financial institutions creating additional mandatory spend requirements.
Optimisation module for COLLINE adds additional rich functionality to the product suite.