Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Wonder if MMs will fill the gap on renewed buying interest.
Looks like news spreading, interest gathering pace :) Think Sp has been down due to low trade volume, so maybe MMs don't have much share stock either. Let's see where sp closes.
1st contract wins RNS since Dec 2013.
at 11.6p atm. RNS "Record number of COLLINE Contract Wins"
"23 April 2015 Lombard Risk Management plc ("Lombard Risk" or the "Company") Record number of COLLINE Contract Wins Lombard Risk Management plc (LSE: LRM), a leading provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, is pleased to announce that COLLINE-the company's award-winning collateral management, clearing, inventory management and optimisation solution-has recorded a significant number of sales and 'go-lives' in the past few months. 4 major U.S. and Canadian firms have selected COLLINE for collateral management: · One of the largest banks in the United States by market value has selected COLLINE to support its collateral management needs. This Tier 1, multi-national banking and financial services holding company, conducted a rigorous market search to identify an automated end-to-end solution for its collateral management operations. The COLLINE solution is a replacement to its legacy system which was unable to keep up with the recently imposed and pending regulations. · An independently operated investment management subsidiary of a major Tier 1 multi-national banking and financial services holding company, focused exclusively on providing fixed income and stable value management services to institutional investors, has selected Lombard Risk's COLLINE cross-product collateral management system-most specifically to address its compliance needs with the upcoming FINRA final rule (FINRA Rule 4210) on TBA (To-Be-Announced) transaction mandatory margining for MBS (Mortgage-Backed Security) trades. · A major national financial services organisation and leading provider of retirement services in the academic, research, medical and cultural fields, has selected Lombard Risk's COLLINE cloud solution to support the management of its cross-asset portfolio from multiple US locations. · One of Canada's largest banks as measured by assets, and one of the largest banks in the United States' leading diversified financial services companies, has selected COLLINE to replace its current legacy collateral management system. This decision resulted from a careful review of its global collateral programmes and active search for a comprehensive solution to maximise the efficiency and reduce the cost of its collateral and inventory management processes, whilst supporting regulatory changes and new industry standards. 2 COLLINE clients recently went live in Europe, simultaneously: · Both a European Tier 1 bank with a worldwide licence for nearly the full COLLINE suite and a major Luxembourg-based bank also licensed for Lombard Risk's collateral management solution, successfully went live over the same weekend-illustrating the strength and depth of the Lombard Risk professional services team. 2 new COLLINE clients in Asia Pacific: · A Japanese multi-national banking and financ
Contract wins :)
New Hardman report is out: Http://www.hardmanandco.com/sites/default/files/research_papers/Lombard%20Mar15.pdf?utm_source=Email+Campaign&utm_medium=email&utm_campaign=29208-276945-Lombard+March+15 They now go for 0.9p historic EPS and 1.4p EPS to March'16, with 0.085p and 0.095p dividends. They expect LRM to have net cash which will rise this year. This is the key paragraph for me - a predator would pay handsomely for a client base and potential growth like this: "Lombard Risk’s core client base has always been large banks and it currently has 30 of the top 50 global banks as its customers. These are driven by a combination of 1) regulatory and clients’ risk management requirements 2) Authorities’ regulatory timetables 3) competitive markets. As to the last point, LRM is gaining rather than losing market share and pricing is robust. Slippage in Authorities’ planned timetable of requirements is referred to in yesterday’s update (after a very strong FY14). The core risk product, constantly updated, COLLINE, showed excellent growth in FY14 and also is strong in FY15E."
The revenue shortfall is clearly disappointing but partly explainable. Alliance type relationships and channel parents promise the world and in my experience under deliver. While shortfalls caused by delays in regulatory timelines are part of this business and management need to expect them and keep a tight rein on costs around them. The cost overrun doesn't reflect well on the CEO and new CFO. We are yet to see any hard line business execution by the Lombard management team and a strong Board would certainly be holding the CEO of a public company irrespective of shareholding accountable. Someone needs to remind Lombard they are not providing a public service and ahareholders want free cashflow generation and not that silly EBITDA they report. Shareholders have been waiting patiently and if there is no improvement with free cashflow generation in the 2015 year maybe it's time for change?
Let's hope the cash situation is ok. No mention of Compliance Assessor....... I'm still unsure as to why the business is naturally second half weighted (other than organic six monthly growth).
Disappointing trading update to the 31/3 year end just out. Revenues just behind expectations due to delays, plus some additional costs, means EBITDA will be materially below. I'm happy to hold as the outlook remains extremely good imo, and the miss seems to be mostly due to time lag rather than anything meaningful, particularly as LRM themselves comment that the next 12 months are both "extremely promising" and "very promising". Share price-wise LRM are simply back to square one after the steady rise. News flow re the delayed revenues should mean a good year this year and hopefully a rise back to 15p and beyond as regulation and legislation is finally implemented.
"Increasing demand" for another of LRM's solutions to new regulatory requirements: Http://www.lombardrisk.com/press/13317 "March 9, 2015 REPORTER actively in use by firms to meet EBA and PRA liquidity coverage reporting More firms use Lombard Risk REPORTER for end-to-end regulatory reporting in UK than any other solution European Banking Authority (EBA) Common Reporting: COREP – FINREP – ‘LIQREP’ LONDON, UK – 9th March 2015: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated regulatory reporting, collateral management and compliance solutions for the financial services industry, is pleased to announce that REPORTER is actively in use by firms for the creation and submission of regulatory liquidity reporting in line with both the European Banking Authority’s pan-European and local UK regulatory Prudential Regulatory Authority requirements. As part of the European Banking Authority’s (EBA) harmonisation of European regulatory reporting, local competent authorities are implementing a new expanded liquidity regime at European and ‘local’ levels (Bank of England, PRA in UK), designed to monitor current processes as well as provide insight into future operations. The CO(mmon) REP(orting) framework initially comprised reporting about Capital Adequacy, Large Exposures, IP Losses, Leverage, Liquidity Coverage and Stable Funding and Asset Encumbrance and firms had to dig deep to produce more, and more detailed, calculations and reports for the regulator (electronically in XBRL). COREP was closely followed for many firms by FIN(ancial) REP(orting)..... ....At the same time, the UK PRA’s liquidity regime is changing to take account of the changing European landscape. Firms need to realise that, for many, the existing regime continues for some time, at least in part, but other firms, especially certain foreign branches, may be impacted quite significantly..... ....Many new firms have turned to Lombard Risk REPORTER to implement a single, comprehensive EBA Common Reporting solution (which includes COREP, FINREP and ‘LIQREP’) in place of continuing with either in-house, spreadsheet-style reporting, or previous vendor solutions that are no longer able to keep pace with the regulations or the technology platform now required. Robert Markham, EMEA Sales Director – REPORTER, at Lombard Risk explains: “Lombard Risk is seeing an increasing demand in the market for a truly modular solution with comprehensive core coverage and functionality, combined with flexibility in terms of multi-source integration, configurable workflow and analytics. The accelerating growth of Lombard Risk’s regulatory market share once more validates our strong solution roadmap.” etc!
Hardman's monthly newsletter is just out for March and has a nice page on LRM. They continue to go for 1.8p EPS to March'15, with 2p EPS for the year starting next month, and 0.085p and 0.095p dividends. LRM should also have £3m net cash, which is building nicely. Their summary is as follows: Http://www.hardmanandco.com/sites/default/files/research_papers/March%202015.pdf?utm_source=Email+Campaign&utm_medium=email&utm_campaign=29208-275692-Monthly+March+2015 "A trading update is due in a month’s time, followed by full year results likely mid May. LRM by its nature is second half weighted in its profit recognition. The positive level of sales activity H1 resulted in a continued substantial order book/backlog of contracted revenue of £5.1m, supporting our confidence in H2 sales. LRM entered H2 with a strong and visible short term pipeline. It referred previously to European Banking Authority's Asset Encumbrance and Liquidity Coverage Ratio regulations as creating further opportunities in H2 and into FY16. As at the last interims: “The Company achieved a record first half revenue of £9.3 million, up 27.7% on the previous year, and this bodes well for our full year performance.” We see our top line estimate to be conservative, whilst full year margins should be rising at both EBITDA and PBT levels. This is all about 1) delivery of current backlogs, 2) expanding the suite and 3) expanding routes to market via partnerships and ‘organically’ for the more medium term. We note how LRM’s expenditure on product development is high by comparable industry standards. The product expansion, growth in partnering (expanding the geographical footprint) and the strategic alliances such as Genpact (November 2014) are supportive to medium term growth. H1 growth was driven by COREP, a well established product. This had 121 clients at that stage: far more than originally might have been anticipated. COLLINE will be boosted in all likelihood with the Genpact roll-out. At the last Interim statement, LRM made the following comment regarding its market positioning. We consider this to be one of the most important features of that Statement: “The Company is now well into its major investment cycle, prompted by opportunities arising from recent regulatory and market changes. Such changes will in all probability continue and the Company will continue to look carefully at the opportunities that these changes bring.” Non Executive Chairman."
Stocks go up
Looking very strong going into next month's year end trading update - unsurprising considering the fundamentals, the market-leading position and the positive outlook from H1.
Here is a summary of 4 stock picks, 2 in the US and 2 in the UK, including Lombard Risk. http://australiansmall-capcompanies.blogspot.com.au/2015/02/emerging-micro-cap-software-plays-going.html
Thanks for this. It's my understanding these regulatory reporting contracts are not big in size. I'd more more interested in a collateral contract with a big bank. Positive all the same.
....at a major French bank: Http://www.lombardrisk.com/wp-content/uploads/2015/02/Major-French-bank-selects-Lombard-Risk-for-Canadian-regulatory-reporting.pdf "MAJOR FRENCH BANK SELECTS LOMBARD RISK FOR CANADIAN REGULATORY REPORTING Bank to automate its regulatory reporting to the OSFI New York, USA – 10 February 2015: Lombard Risk International (USA) Inc., a wholly-owned subsidiary of Lombard Risk Management plc (Lombard Risk), a leading provider of integrated regulatory reporting, collateral management and compliance solutions for the financial services industry, is pleased to announce that a major French banking organization has selected Lombard Risk’s automated regulatory reporting solution for its Canadian reporting requirements to the OSFI (Office for the Superintendent of Financial Institutions). Vincent Raniere, Managing Director, Head of Regulatory – Americas & APAC of Lombard Risk commented: “Improving regulatory reporting is an important issue as more and more regulations are being imposed and closely monitored by various agencies on a global basis. Currently, the burden is placed on the banks to adapt to these changes manually. Banks are searching for an automated solution that is maintained by an outside provider and delivers clear, auditable reports– our solution meets and exceeds these needs.” REG-Reporter, Lombard Risk’s US and Canadian automated regulatory reporting solution, provides an efficient, accurate and streamlined regulatory reporting process–enabling users to save time and resources. Designed and maintained by experienced business practitioners for end-to-end financial reporting, REG-Reporter addresses the requirements of both domestic and international banks and financial institutions by automating compliance with mandated reports to the Federal Reserve Bank, OSFI and other regulatory agencies."
Hardman's monthly review for February is just out, including a page on LRM. They retain their forecasts of 1.8p EPS to March'15, with a 0.085p dividend: Http://www.hardmanandco.com/sites/default/files/research_papers/February%202015.pdf?utm_source=Email+Campaign&utm_medium=email&utm_campaign=29208-271342-Feb+Monthly+15+ Most importantly: "A global business in a growth market: We anticipate further details of the strategic collaborative agreement announced 21st November. Genpact Limited ("Genpact"), is to provide the Company's COLLINE® collateral management product for a new product solution. Genpact will integrate its Collateral Agreement and Reference Data Services (CARDS) with Lombard Risk's COLLINE®. Genpact is big. It is a New York based company with a global client base providing intelligent business operating solutions to many of the world's leading corporations, traded on the NYSE capitalised at approaching US$4bn. This is a large market. Just taking one bank: HSBC’s compliance and risk bill has been publicly stated as $800m (as of August 2014), up ‘around one-third’ on the previous year (City A.M.). Lombard Risk addresses certain segments but alliances with much larger global operators (Genpact is not the only alliance) are a window on the potential. Lombard Risk, as an established strategy, is investing heavily in its software development."
LRM's new US partner Genpact's post-results conference call had a very nice mention for LRM. Genpact are a $4.7 billion m/cap company, so for little ol' LRM to be mentioned as a highlight is quite a compliment: Http://seekingalpha.com/article/2886026-genpacts-g-ceo-tiger-tyagarajan-on-q4-2014-results-earnings-call-transcript?part=single "we continue to use strategic partnerships and alliances to enhance our capabilities. In the fourth quarter, we announced the collaboration with Lombard Risk Management to provide a new solution to help financial services firms optimize their collateral management operations. The collaboration between Genpact and Lombard Risk addresses major pain points in the industry and significantly improves margin and collateral management efficiencies with an end-to-end solution". LRM were also mentioned in Genpact's excellent results yesterday: Http://www.techmarketview.com/ukhotviews/archive/2015/02/05/genpacts-new-bookings-jump-50 Extract: "Partnering is also becoming increasingly important. In November Genpact formed a partnership with mobile imaging player Top Image Systems, which has applications in emerging tech like Google Glass (see here). It has now announced a new partnership with UK-based regulatory and compliance solutions provider Lombard Risk Management (see Risk Rewards Lombard Risk Management). This is to provide a new solution to help financial services firms optimize their collateral management operations."
LRM hiring in Asia due to expansion in the area "to meet the customer project demands": Http://hk.jobsdb.com/HK/EN/Search/JobAdSingleDetail?jobsIdList=100003003441691&sr=1 "Lombard Risk International (Hong Kong) Limited We are a leading provider of collateral management and regulatory compliance software solutions to banks and financial institutions on a worldwide basis. We are currently seeking aJunior Technical Consultant, to be based in our Hong Kong office to be responsible for providing consultancy to our clients for our products. Due to the expansion of the business activities in Hong Kong and Asia Pacific, we are in need of additional consultants to meet the customer project demands. Lombard Risk provides regulatory solutions for many countries: USA, China, Hong Kong, Singapore, Japan and Ireland, and has recently acquired an American Regulatory software provider who are the largest supplier of solutions to overseas banks in the USA." In addition, LRM's new American partner Genpact had excellent results last night: Http://www.techmarketview.com/ukhotviews/archive/2015/02/05/genpacts-new-bookings-jump-50 Extract: "Partnering is also becoming increasingly important. In November Genpact formed a partnership with mobile imaging player Top Image Systems, which has applications in emerging tech like Google Glass (see here). It has now announced a new partnership with UK-based regulatory and compliance solutions provider Lombard Risk Management (see Risk Rewards Lombard Risk Management). This is to provide a new solution to help financial services firms optimize their collateral management operations."
rivaldo, I must have been dreaming! Tom Winnifrith did indeed tip LRM but on 4 January 2014 (sic), as I have indicated. However, the tip that I should have reported for the 4 January 2015 (sic) was this: Stocks to Watch:...Lombard Risk Management PLC... by Jerad Winslet Jan 4, 2015 at <http://www.winstonview.com/stocks-to-watch-pz-cussons-plc-lombard-risk-management-plc-homeserve-plc/37447/> "Investors in Lombard Risk Management PLC (LON:LRM) witnessed an appreciation in the value of their holding as the shares posted gains of 2.86% or 0.375 points in todays session. The shares which opened the session at 13.125 remained mostly up before concluding the day at 13.3025. The stock price hit a high of 13.6975 and a low of 13.25 while the volume increased to 220,400 shares. The previous session for the counter had ended at 13.125. From the technical domain, the 30-day simple moving average of 13.10 and the 60-day simple moving average of 12.97 hold tremendous value for the near-term participants. The trading currency is in GBp."
rivaldo, this is the reference to Tom Winnifrith's tip that you requested: http://tomwinnifrith.com/articles/4242/2014-tip-of-the-year-number-3-lombard-risk-management-at-a-135p-offer The headline text reads '2014 Tip of the year Number 3 – Lombard Risk Management at a 13.5p offer Saturday 4 January 2014' and is followed by 'Share this article with your comrades in revolutionary capitalism" :-) I apologise for my slow response - I had to search to find the article again!
Persistent buying over the last few days. Nibor, LRM was definitively not tipped by TW last week AFAICS. If you can provide a link I'm happy to be corrected, but I haven't seen anything. Anyway, the more attention for decent small caps like LRM the better.
LRM was tipped by Tom Winnifroth at the end of last week, so I wonder for how long the step-change in share price will hold. Still, I am a natural optimist...
Good point as a £2 million pound initial license fee from a Colline sale to a large European bank will be difficult to replicate in 1h 2015. I'm hoping there are a few chunky renewals falling due in the half to 31 March 2015, noting Colline licenses are typically up for renewal on a 5 year basis.