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20 Jun 2008 07:00
Lombard Risk Management plc
(the "Group")
Trading Update
Lombard Risk Management plc, a fast growing company providing regulatory, risk management and valuation software for the Global financial sector, announces a trading update for the year to 31 March 2008.
Group revenues increased by over 25% to approximately £8.7 million (2007: £6.9 million). Trading in the second half of the financial year was particularly strong with revenues of approximately £5 million, the highest half yearly revenues the Group has ever recorded.
The Group traded profitably in the second half of the year. In addition the Group will report a gain on the disposal of its independent valuation business which was announced in February 2008. The overall profit in the second half was not sufficient to eliminate first half losses, so the Group will record an overall loss for the year, but this will however be substantially below the loss reported in the 2007 financial year.
The Group has seen minimal adverse impact if any to its regulatory and compliance revenues as a result of the credit crunch, in fact as previously reported the Board foresees future benefit to the Group from an increase in financial regulation. The Group is extremely busy with its current deliveries of product for regulatory software. In addition, the sales pipeline for the COLLINE® collateral management software product is appreciably stronger than six months ago aided by the current concerns in the market over counterparty credit risk, and the fact that collateral management is a key tool in reducing credit risk.
The Group has plans for significant expansion of its Shanghai operation over the next few months although this is not likely to lead to a material increase in the costs overall.
The Group expects to publish its final audited results for the year to 31 March 2008 during the last week of August 2008. The above numbers are subject to audit adjustments.
Enquiries:
Lombard Risk Management plc:
John Wisbey, Chairman and CEO
T: +44 (0)20 7384 5000
E: john.wisbey@lombardrisk.com
Noble & Company Ltd (Nominated Advisor):
Matthew Hall, Director
T: +44 (0)20 7763 2200
Bishopsgate Communications Ltd (Financial PR):
Jenni Herbert, Account Director
T: +44 (0)20 7562 3350
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