Lombard Risk Management Regulatory News (LRM)

15 Apr 2005 15:21

Lombard Risk Management PLC15 April 2005 Lombard Risk Management plc15th April 2005 Trading Statement for the 12 months to 31st March 2005 Lombard Risk Management plc ("the Group" or "LRM") provides the followingtrading statement ahead of its final results for the 12 months ended 31st March2005. Trading Statement Lombard Risk Management plc, the provider of risk systems and independentvaluation services, is providing the following trading statement ahead of itsfinal results for the 12 months ended 31st March 2005, which will be announcedat the beginning of June 2005. Revenue for the 12 months to 31st March 2005, although ahead of revenue in theprevious year, has been somewhat lower than market expectations, andconsequently this has affected profitability for the second half of the year. Although the Company has continued to see consistent demand for its products andservices, several large transactions that were expected to close prior to theend of the trading year had not yet closed by the year end. In addition,software rental and data revenues being at a higher level, and licence salesbeing at a lower level than expected impacted the sales mix. However, recurrentrevenue was at a higher level than expected. Costs have been affected by the addition of several new members of staff to thesales team. There is a growing sales pipeline owing to the team's efforts, butit has taken longer than expected for the new team to reach full productivity. The company also believes that, as a result of trading and corporate activity,it may be able to make use of some of its tax losses in the next financialperiod, and has consequently for the first year in four years not applied tosurrender any of its tax losses against payment for R&D tax credits. John Wisbey, Chairman and Chief Executive of Lombard Risk, commented: "Timing isalways a factor with large transactions and the subsequent impact on year endnumbers. However, we are pleased with the level of recurrent revenues, and weremain confident in the level of market demand in our focus areas of creditderivatives and hedge fund management, and in the growth story of the Companyover the next few years." The Company will announce its final results for the 12 months ended 31st March2005 at the beginning of June 2005. For further information please contact: John WisbeyChairman & CEOTel: 020 7384 5000 This information is provided by RNS The company news service from the London Stock Exchange