11 Mar 2015 11:00
11 March 2015
Lombard Risk Management plc
("Lombard Risk" or the "Company")
Trading Statement and Results Date
The Board of Lombard Risk Management plc (AIM: LRM), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, today provides an update on current trading and outlook, ahead of the Company's financial year ending on 31 March 2015.
As announced at the time of the interim results in October revenues are again second half weighted (first half revenues £9.3m), and revenue for the year will be higher than the £20.4m reported in 2014. However as the result of regulatory delay leading to deferrals in the signing of certain contracts and delays in achieving revenues from certain of the alliance partnerships, the revenues for the year will fall slightly short of current market forecasts. The slight shortfall in revenues for the year compared to market forecasts is disappointing, but does not reflect any deterioration in the medium term growth prospects for the Group. Given the level of operational gearing in the business any shortfall in revenue necessarily has a greater proportional impact on profitability. EBITDA reported for the first six months was £0.8m. While the Group has traded strongly in the second half, lower revenue growth, together with certain limited additional costs, means that second half EBITDA will be materially lower than the level of around £5.8m required to meet market expectations.
Some divisions of the Company have performed better than others. Despite delays in clarifying the effective regulatory date for IOSCO rules, the collateral management business has recorded good revenue growth and has had notable successes with contract wins with a number of top banks in the United States, Canada and Japan. The regulatory reporting business has consolidated its growth of last year, and has a very promising pipeline going into the next financial year. The alliance partner program is looking extremely promising for the next 12 months, despite not achieving the anticipated level of recognized revenue in the current financial year.
The Company's results for the year to 31 March 2015 will be released on 21 May 2015.
For further information, please contact:
Lombard Risk Management Tel: 020 7593 6700
John Wisbey, CEO
Nigel Gurney, CFO
Charles Stanley Securities Tel: 020 7149 6000
Nominated Advisor and Broker
Russell Cook / Carl Holmes
Newgate Tel: 020 7653 9850
Robyn McConnachie / Tim Thompson