Source: Lombard Risk Management
Lombard Risk Management plc ("Lombard Risk" or the "Company"), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce its final results for the year to 31 March 2012.
• Revenue up by 8% on last year at £12.8m (2011: £11.8m)
• Profit before tax of £2.5m (2011: £0.6m)
• Profitability achieved by both the Regulatory and the Trading and Risk businesses
• Closed contract for COLLINE® with second Tier 1 bank
• Significantly enhanced delivery and execution capability with total staff in excess of 250, 150 of whom are in our Shanghai development and testing centre
• Focus on development of products for new mandatory regulatory reporting requirements
• Acquisition of REG-Reporter business, a leading player in the regulatory reporting Americas market
• Planned integration ahead of schedule; £0.5m (annualised) cost savings from synergies already realised
• Cash at end of period of £0.1m with £2.5m debt (2011: cash of £1.8m)
• Final dividend of 0.035p (2011: 0.030p) recommended for a total of 0.055p per share. The dividend will be payable on 27 July 2012 to shareholders on the register on 20 July 2012
John Wisbey, Chief Executive Officer, commented: "Given the background of a Eurozone crisis and related budget freezes at many of the banks, together with the lack of regulatory changes in the UK, I believe these results represent a reasonable outcome. Key highlights of the year included winning a further Tier 1 bank client, Société Générale, for COLLINE® and the strategically significant acquisition of REG-Reporter, which transformed our regulatory business in the US, advancing us to number 1 in foreign bank regulatory reporting.
"Turning to the current year we have seen a significant thawing of banks' budgets since the beginning of 2012 and we entered the current twelve months with a strong order book. There is a regulatory tailwind behind us in the UK/EU from the European Banking Authority's COREP reporting requirements; we are expecting additional revenues from several new products and modules and anticipate REFORM™ to take advantage of the Dodd-Frank Act and similar EU and Asian legislation.
"We enter the nee new financial year with a good level of optimism and our aim is to deliver significant and sustainable turnover and earnings growth over the next five years."