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My takes around the immediate departure of the Founder and 38% shareholder are the 2015 numbers don't look too pretty and perhaps LRM is in play as the likelihood of this controlling interest being shopped around has risen. Maybe fresh management eyes is not a bad thing ?

With a bit of luck these collateral deals will now offset any cashflow impact from the the slow end to 2015. They do appear to be genuinely attractive deals deals however. I also like to see the software being sold globally to blue chip type clients. I'm guessing the MM is sitting on quite a lot of stock which needs to be cleared before price can spike.

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?

Top line revenue growth looks pretty good. The company is however capitalising more software development than they did historically. As long as this software development is for new revenue additive software products I'm happy. Free cashflow generation wasn't so flash due to this software capitalisation and more of the companies money invested in working capital which I can understand/live with. Overall it's ok for a company focussed on growth.

Stocks go up

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

Her is a summary of 4 small-cap stock picks, 2 in the UK and 2 in the US, including Kalibrate. 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.

Feels like more sellers than buyers at the moment. My major concern is low oil price/fuel prices will dampen the demand for Fuel Station Chains, investing in their business with this type of software. Here are some pro's and cons. Fingers crossed when the company updates the market on the 10/03/2015, the momentum they noted in their outlook in their 2014 annual report has continued for the full half. We also have the benefit of the $2 million recurring contract kicking off in July 2014. http://australiansmall-capcompanies.blogspot.com.au/2015/02/kalibrate-technologies-retail-fuel.html

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.

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

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.

I couldn't see anything on ADVFN. What's the CEO's major angle on the stock ramping ?

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.

My guess would by selling by the MD.

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.

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.

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

Excellent ! With LRM capitalising a lot of its software development these changes in eps can be quite smoke and mirrors. What's the brokers estimate for revenue in 2015 and 2016 as well as cash in the bank for 2015 and 2016?

Does anyone know what an average REPORTER contract is worth in terms of upfronts (initial license fees plus one off professional services) plus ongoing annual maintenance fees?