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to correct dates - announcement in Dec 13 boosting revenues in 2H of 13/14!!
Re ramping - I can only assume he (like most CEOs) believes the stock is undervalued.
discrete - not been on here for a while ....... just read the blog; interesting. Two key points that come to mind - there is unlikely to be too much 2nd half increase in the deferred revenues; just for those contracts that commenced since Oct 13. Other key point to note is the announcement in Dec 12 of a major contract win which would have boosted revenues in 2H 12/13. Hopefully new contracts will compensate for this. All the best.
Going well...
paet - here is a blog on the 1st half 2015 result http://australiansmall-capcompanies.blogspot.com.au/2014/10/lombard-risk-management-6-months-to-30.html
Yep, certainly an iIntriguing share transaction, with the non-exec appointed a year ago basically selling the same shares he acquired in February, at the same 13p price, leaving his residual holding intact at just over 5m shares. The similar price and amount involved - and his remaining in position and leaving his original holding untouched - leads me to think that this is due to some personal circumstance or other. It's usually divorce!
I notice a Director sold 4 million shares which is his second major sell down in 2014. Not a good look. Do shareholders really need to paying Directors fees to this bloke while he gets access to regular internal company reports and aggressively sells down his shares. I'm of the view that micro-cap company Directors have to suck it up and either hold or add to their shareholding and if your personal circumstances don't allow, then you resign your board position and then sell.
21 November 2014 Lombard Risk Management plc ("Lombard Risk" or the "Company") Lombard Risk and Genpact to launch new collateral management solution Lombard Risk Management plc (AIM: LRM), a leading global provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, has announced that it is entering a collaboration agreement with Genpact Limited ("Genpact"), to provide the Company's COLLINE(R) collateral management product for a new product solution. Genpact will integrate its Collateral Agreement and Reference Data Services (CARDS) with Lombard Risk's COLLINE(R) collateral, clearing, inventory management and optimization solution. This unique solution will enable both buy and sell-side firms to automatically digitize and capture the terms and conditions of various collateral agreements across asset classes, counterparties, and business silos, resulting in a margin and collateral rulebook by counterparty. This solution will help financial services companies to optimise their collateral management operations. Lombard Risk and Genpact also intend to launch a joint business processing outsourcing (BPO) service for their clients' collateral management function. Genpact is a New York based company with a global client base providing intelligent business operating solutions to many of the world's leading corporations. Genpact is traded on the NYSE and is capitalised at over $3.8bn. Commenting on the announcement, John Wisbey, Chief Executive stated "This is an exciting opportunity for Lombard Risk, providing an opportunity to promote COLLINE(R) on a global basis through a collaborative agreement with one of the world's leading business solution providers. COLLINE(R) was awarded the Collateral Technology of the Year Award by Custody Risk in London last week, and this collaboration with Genpact will further enhance the breadth and depth of our offering". Enquiries Lombard Risk Management plc Tel: 020 7593 John Wisbey, CEO 6700 Nigel Gurney, CFO Charles Stanley Securities Tel: 020 7149 Nominated Adviser and Broker 6000 Russell Cook / Carl Holmes Newgate Threadneedle Tel: 020 7653 Robyn McConnachie 9850 This information is provided by RNS The company news service from the London Stock Exchange END MSCFEAFDFFLSESF Lombard Risk Management (LSE:LRM) Historical Stock Chart 1 Year : From Nov 2013 to Nov 2014 Click Here for more Lombard Risk Management Charts.
She's starting to move...
........... Very Positive News..........
I couldn't see anything on ADVFN. What's the CEO's major angle on the stock ramping ?
Agree; partnership looks good ...... and COLLINE is clearly a market-leading product. That said it always concerns me when the CEO feels he has to ramp his company's stock as JW did on ADVFN yesterday.
That sounds very good. Interesting the move by the JV partners to business process outsourcing, which is not a traditional business for a pure play software company.
This is a "world first". and Genpact are a $3.8 billion m/cap.... Http://money.cnn.com/news/newsfeeds/articles/prnewswire/NY72184.htm "Genpact and Lombard Risk Launch New Collateral Management Solution for Capital Markets Innovative collaboration helps financial institutions streamline their margin and collateral management processes November 20, 2014: 10:00 AM ET NEW YORK, Nov. 20, 2014 /PRNewswire/ -- Genpact Limited (NYSE: G), a global leader in designing, transforming, and running intelligent business operations, and Lombard Risk Management plc (LSE: LRM), a leading provider of integrated collateral management, liquidity, and regulatory compliance solutions for the financial services industry, announce their collaboration to provide a new solution to help financial services firms optimize their collateral management operations. The collaboration between Genpact and Lombard Risk with CARDS and COLLINE addresses major cost pain points in the industry, and significantly improves margin and collateral management efficiencies with a true end-to-end solution. Genpact will integrate its Collateral Agreement and Reference Data Services (CARDS) with Lombard Risk's COLLINE® collateral, clearing, inventory management and optimization solution. This unique solution will enable both buy and sell-side firms to automatically digitize and capture the terms and conditions of various collateral agreements across asset classes, counterparties, and business silos, resulting in a margin and collateral rulebook by counterparty. More specifically, the digitized data loads COLLINE's agreement management database with the critical counterparty margin and collateral rules needed to efficiently manage and optimize margin and collateral, sharply reducing the time required to manually capture the information from existing and new agreements and amendments. Genpact's service includes the data entry of custom agreement terms which are incapable of being extracted and digitized by CARDS, and management of the data. In addition, the two companies are launching a joint business processing outsourcing (BPO) service for the collateral management function to include processes such as setup and management of agreements, integrating and verifying positions and inventory, processing of margin calls extending from issuance to settlement, and supported by aging analysis, dispute resolution, and failed settlement and customized reporting—together with comprehensive optimization and inventory management. Real-time margin management and intra-day collateral management are rapidly becoming the table stakes for financial services firms to survive and grow. They must drive a number of key functions including managing dynamic margin, collateral eligibility rules, settlement systems, exchanges, collateral across multiple counterparties, and clearing venues with diverse margin and collateral requirements. etc"
My guess would by selling by the MD.
enormous trades - appear as sells though of circa £600K must surely get holdings rns tomorrow...any thoughts?
Discrete - I hope you are right and I wish you well
In the 12 months to 30 Sep 2014 the company generated free cashflow which they highlighted in their interim albeit it was mostly from a cracking 6 months to 31 March 2014. The company are pointing to a decent cash generative 6 months to 31 March 2015 which I'm betting they will surpass the negative cashflow seen in the 6 months to 30 September (which was 1 million better the the corresponding period). I believe the company is now generating cash.
Discrete - why does it feel like LRM is sustainably cash flow positive? But yes, the revenue multiples are available, but only if the company (and key shareholder) wishes to sell!
LRM certainly has momentum. It feels like we are now sustainably cash flow positive which typically encourages investors. The company will however only be on a reasonable valuation multiple in 2017 on my numbers but then again these type of businesses with 300 + blue chip corporate clients buying collateral and regulatory compliance software can trade at 2 or 3 times revenues well ahead of earning which make valuation sensible.
Hardman have just issued their monthly round-up for November, including a page on LRM as follows, forecasting 1.8p EPS, £3m net cash and a 0.085p dividend this year to March'15: Http://www.hardmanandco.com/sites/default/files/research_papers/November%202014%20(24).pdf?utm_source=Email+Campaign&utm_medium=email&utm_campaign=29208-256797-November+Monthly "Lombard Risk Management (LRM) Interims were reported on 16th October. Trading since the year end has been ahead of the same time in the previous year and at the agm Lombard stated that FY15 trading would be H2 weighted. 1H15 reported sales of £9.3m up 27.7%; EBITDA £0.8m (vs small loss);PBT £0.01m (vs small loss); EPS 0.0p (vs loss 0.43p); Net cash £2.2m (£1.8m). We have not changed FY15E numbers (bar a reduction in estimated tax charge hence a FY15E EPS upgrade). Lombard Risk Management sales growth in the past two full years is 31.4% and 21.6% respectively. We estimate a slow down to 10.3% FY15E and 12.0% FY16E but the risk to these estimates is on the upside. Circa 46% of group turnover is recurring and of our H2 estimates, over 60% was already either recurring or in the end September order backlog or term renewals. Judging by past performance this should underpin full year estimates strongly. The order book has gone sideways from its particularly high level of March 2014, standing at £5.1m September 2014 and somewhat higher currently. At end FY12, the order book stood at £2.7m. We anticipate ongoing growth opportunities from regulatory drivers but importantly, also new product areas e.g. the ComplianceASSESSOR product being developed currently to guide clients as to which compliance issues they need to be acting on – delivery 2015. Further, Asset Encumbrance is a core new area for future revenue growth. Lombard Risk offers templates and instructions to ensure harmonised reporting of asset encumbrance across the organisation. Whilst our estimates point to steadier growth in top line, there are ever more opportunities as legislative drivers continue strongly. The clients themselves have ‘in-house’ risk management requirements as well as regulatory requirements. Geographic expansion, particularly in USA and Japan into the crucial Far East market, will be probably an even greater feature in coming years."
Moving up nicely. Quite apart from being on a P/E of only 6 or 7, LRM is all about market positioning, being at the forefront of the need to meet the tsunami of new regulations and controls in its sectors. The new alliances with market leaders like Broadridge in the USA and now in Japan should produce lots more business for LRM's seven sector-leading products. LRM also has a healthy Balance Sheet, with around £2m net cash. Cash flows will improve as revenues grow and development expenditure falls away given the huge investment made in recent years.
I have been studying the Hardman note, with the broker disappointingly only forecasting free cashflow generation of 1.0 in 2015 and 1.4 million in 2016. I also didn't read too much commentary in the 6 months to Sep 2014 company report, concerning the tapering of the sizable technology spend going forward. When this starts heading to 20% of sales is when investors will start to make some proper money. The below is a blog discussing the latest company result. http://australiansmall-capcompanies.blogspot.com.au/2014/10/lombard-risk-management-6-months-to-30.html
New alliance with NTT, who operate in over 40 countries....with NTT and the massive Broadridge now pushing COLLINE, that's two great endorsements. COLLINE really has huge potential..... http://www.lombardrisk.com/press-coverage/ntt-data-lombard-risk-join-forces-collateral-management-solution-financial-services-industry "ALLIANCE PARTNERS IN THE NEWS PRESS RELEASES OCTOBER 21, 2014 NTT DATA’s Global Reach Provides Lombard Risk Collateral Management Solution on a Worldwide Scale Boston, MA, USA – October 21, 2014 – NTT DATA, Inc., a leading IT services provider, and Lombard Risk Management plc, a leading provider of integrated collateral management, regulatory reporting, and compliance solutions for the financial services industry, today announced a joint collaboration to offer a globally-scalable collateral management solution. Lombard Risk’s best-of-breed COLLINE® collateral, clearing and optimization solution combines with NTT DATA’s knowledge of country-specific regulatory environments, business and operational expertise, and cost-effective global delivery to provide customers with a solution that increases the efficiency of their collateral operations. While fundamental reform of derivatives and secured lending markets in the aftermath of the 2008 financial crisis has rested on the efficient exchange of collateral as a key to counterparty credit risk mitigation, collateral management represents an ongoing challenge for most Financial Services institutions. By combining Lombard Risk’s collateral management solution COLLINE®, and NTT DATA’s blend of critical business and technology expertise, clients are provided with an innovative and cost-effective solution supporting region-specific regulatory requirements, and enabling collateral optimization across multiple business lines. Executives from both companies jointly presented at the recent Sibos convention in Boston to showcase the solution, currently being delivered to multi-national clients with operations in global locations. NTT DATA offers the solution as part of its risk and compliance solution portfolio. “Financial service firms continue to balance growing customer expectations with increased regulatory demands,” said Krishna Prabhu, Senior Vice President, NTT DATA North America Financial Services. “The joint solution brings together Lombard Risk’s sophisticated collateral management solution with NTT DATA’s deep data management expertise and global reach to solve our client’s critical business challenges.” “Collateral Management represents a rapidly evolving opportunity to deliver value to the business and address a frequent source of operational pain,” says Cliff van Tonder, Global Alliances Director at Lombard Risk. “Our partnership with NTT DATA delivers one of the most powerful relationships in the Collateral Risk and Regulatory software ar
Here's the new Hardman note, with revenue and cash forecasts etc - you probably have to register to read it: Http://www.hardmanandco.com/sites/default/files/research_papers/Lombard%20Oct14.pdf The forecasts have been increased to 1.8p EPS and 2p EPS largely due to a lower tax charge, which is good news. Some good extracts: "Riding the regulatory surge: Interim results Lombard Risk Management’s product suite is focused on GRC (governance, risk and compliance) solutions and is thus an essential part of the ‘plumbing’ in the global banking system. The September 2014 order backlog of £5.1m remained near its all-time high reported six months prior. Strong new contract growth came through 1H15, e.g. 121 COREP contracts including 62 new names over the life of the programme (27 new last year)." "Lombard Risk Management’s core client base has always been large banks. 30 of the top 50 global banks currently are customers. Across the eight segments where the company is strategically positioned, none of the other top five competitors (all of which are much larger organisations such as IBM, SunGard etc) have a good offering in more than five (mostly in only three or four)." "Visibility: In addition to strong software spending, Lombard Risk Management is expanding on two fronts. Regulatory frameworks remain core and in more recent years, collateral and commercial risk management has driven client demand also. New partnerships have been set up: early days but upside from here. Regulatory updating and change is the only constant really and this creates ongoing demand in Lombard Risk’s marketplace, hence underpinning the metrics behind its strong software development cost which of course impacts profits today but fuels sales growth, which stood at 21% last year."