Lombard Risk Management Regulatory News (LRM)

8 Jan 2007 07:00

Lombard Risk Management PLC08 January 2007 Lombard Risk Management plc8th January 2007 Lombard Risk Management plc (the "Group" or "Lombard Risk") Six Contract Wins Lombard Risk Management plc, one of the fastest growing companies in the rapidlyexpanding area of software and independent valuation for the financial sector,announces an update on software contracts won in the last quarter of 2006. Thesuccessful negotiation of these contracts underpins the Board's expectation of50% organic revenue growth for the full year on a like for like basis and thesignificant forward momentum communicated in previous RNS announcements. Colline Collateral Management Software The Group's subsidiary Lombard Risk Systems has won three contracts for itscollateral management software Colline each worth in excess of GBP100,000 intheir first year : 1. A major US asset management firmThe first contract is with LaCrosse Global Fund Services, part of the Cargillgroup. LaCrosse has chosen Colline as part of its core outsourced servicesofferings. On 1st January LaCrosse, which has $6bn assets under management, willbegin offering its services to third parties and Black River Asset Managementwill be the firm's first client. 2. A German bankThe second Colline contract is with Landwirtschaftliche Rentenbank, a majorbanking group with over Euro 77bn of assets, based in Germany. 3. A Portuguese bankThe third contract provides Colline software as a service (an ASP solution) fora Portuguese bank. The Group can now confirm that one of the contracts in the first half of thefinancial year referred to in the Interim Statement and concluded in Septemberwas for Bank of New York, the world's largest custodian bank, for use in itsoutsourced Derivative Margin Management Service. This has already been announcedby Bank of New York itself in a press release http://www.bankofny.com/htmlpages/ npr_2006_2330.htm. Although initially low in value, the revenue model for this deal means that the Group gains more revenue as its customer gains more clients. In addition the Group can also confirm that the major UK energy supplierreferred to in the RNS of 1st September 2006 was Centrica plc, one of theleading suppliers of energy and related services across the UK, Europe and NorthAmerica, (see announcement at http://centrica-news.newslib.com/story/6765-3242767/). Furthermore, the Group has an appreciable pipeline of deals for Colline, severalof which are expected to close in the current quarter. Demand for collateral management software is being driven by a number offactors, but principally the expansion in the use of collateral in derivativemarkets. This is mainly due to the wish to reduce credit risk in financialmarkets and free up credit lines, which in turn is linked to Basel II. Colline'sfirst to market web based technology and the Group's team of ex collateralmanagement practitioners are among the reasons why Colline is being selected asa system of choice. STB-Reporter Regulatory Reporting Software The group's subsidiary STB Systems Ltd has since 1st October won three largenew contracts in the UK for its STB-Reporter regulatory reporting product,together totalling in excess of GBP 300,000 in the first year. These are with 1. a Japanese Global Financial Services firm in the UKThe first STB-Reporter contract is with Nomura Bank International plc, a UKsubsidiary of the Nomura Group. 2. a European-based private bankThe second STB-Reporter contract is with Ansbacher & Co, a UK private bank nowowned by Qatar National Bank. 3. a leading UK consumer finance firm.The Group has an appreciable pipeline of deals for STB-Reporter including verbalconfirmations of orders, several of which are expected to close in the currentquarter. In addition the firm has won a number of smaller deals in the UK, theUSA, the Middle East and Far East for its regulatory and anti-money launderingsoftware. Furthermore the Group can now confirm that one of the deals in the first half ofthe financial year referred to in the Interim Statement and concluded inSeptember was an STB-Reporter contract with Teather & Greenwood, the UKstockbroker now owned by the Landsbanki Group in Iceland. STB-Reporter enables these firms to meet their obligations for UK regulatoryreporting under the FSA's rules. Other similar deals are close to beingfinalised which implement both Basel II reporting and the FSA's IntegratedRegulatory Reporting requirements in this area. Lombard Risk's position in the UK Financial Services Regulatory Market Lombard Risk, through STB Systems, is the market leader in the U.K. BankRegulatory Reporting market with over 140 out of 340 banks in the U.K. andseveral investment firms using the STB-Reporter product for regulatory reportingto the FSA. Most of the revenue from these deals will be recognised in the current financialyear. Enquiries: Lombard Risk Management plcJohn Wisbey, Chairman & CEOTel: +44 20 7384 5000e: john.wisbey@lombardrisk.com Noble & Company (Nominated Advisors)Matthew Hall, DirectorTel: +44 20 7763 2200 Notes to editors Lombard Risk Management plc is one of the fastest growing companies focused onsoftware and independent valuation services for the financial industry. LombardRisk's software is in the areas of valuation, risk management and regulation.Lombard Risk's Colline(R) software, which is delivered either as software or asan ASP service, is a market leader in collateral management. Lombard Risk'sgroup company STB Systems is the market leader for bank regulatory reportingsoftware in the UK through the STB-Reporter product. The Group's Oberon(R) andFirmament(R) software products allow customers to value and manage risk on awide variety of financial instruments with a primary focus on interest rate,credit and foreign exchange derivative and cash markets. The STB-Detectorproduct is fast establishing itself as a mid-market leader in anti moneylaundering and financial crime detection. Headquartered in London, with offices in New York, Shanghai, Hong Kong,Singapore and Johannesburg, Lombard Risk's main customer base consists of banks,investment firms, asset managers, hedge funds and fund administrators, andenergy companies. In the UK Lombard Risk does business with over 40% of the 340banks that operate in the UK. Internationally Lombard Risk has dealings withover 20 of the top 50 banks in the world and many of the leading names in thehedge fund industry. Lombard Risk's shares were admitted in 2004 to AIM, the London Stock Exchange'sspecialist market for growth companies, and have the ticker symbol LRM. This information is provided by RNS The company news service from the London Stock Exchange