Lombard Risk Management Share Discussion Threads

[rivaldo] 23/9/2014 11:34

Excellent news igoe, cheers.

And not just the one Japanese bank client win, but "a consistent flow of financial institutions (2 in the last week)" and "an influx of new business".

[igoe104] 23/9/2014 11:01

GOOD NEWS.

Large Japanese bank switches from rFrame to Lombard Risk REPORTER for regulatory reporting and compliance.



Lombard Risk Management plc (LSE:LRM), a leading provider of integrated regulatory reporting and compliance, and collateral management solutions for the financial services industry, announces large Japanese bank switches from rFrame to REPORTER for Bank of England regulatory reporting.

“Following a series of tactical mergers and acquisitions by software companies to acquire market share, we have seen an influx of new business as clients that are faced with changing to the acquirer’s software platform take the opportunity to re-evaluate the market.” Says John Wisbey, Chief Executive Officer, Lombard Risk. “When faced with switching reporting systems, it’s an opportunity for firms to see what’s new on the market, and we have seen a consistent flow of financial institutions (2 in the last week) electing to move to our REPORTER.”

Rob Markham, Head of Regulatory Sales, EMEA, explains: “We are delighted to welcome this prestigious Japanese bank and others to our growing client community, and thank them for selecting REPORTER. Lombard Risk clients benefit from our unparalleled 25 years’ experience in the risk and regulatory compliance field, and a particularly flexible product deployment approach that enables our solution to fit around clients’ existing infrastructures, rather than enforcing a prescriptive system that will, over time, complicate the reporting processes.”

REPORTER is an end-to-end regulatory reporting solution for the global financial services sector which is used by over 250 firms globally, 100+ for Bank of England reporting and more for EBA Common Reporting here in the UK

[rivaldo] 19/9/2014 07:21

Remembering the LRM/Broadridge collaboration re collateral management:



This news last night from Broadridge in the USA sounds encouraging:



"Fri, Sep 19, 2014, 2:20AM EDT

Broadridge Helps Global Banks Accelerate Operational Transformation

In Response to Changing Market Structure, Banks Take Steps to Mutualize Costs across their Capital Markets Businesses

LAKE SUCCESS, N.Y., Sept. 18, 2014 /PRNewswire/ -- Broadridge Financial Solutions, Inc. (BR), the leading global provider of technology-driven solutions to the financial services industry, reports that in the six years since the global financial crisis, its post-trade managed service client base in North America has more than doubled. This growth represents 15 new clients and is the fourth year of double-digit growth for Broadridge Business Process Outsourcing.

After years of cost cutting throughout the financial services industry, recent and ongoing demands for increased capital and collateral are putting renewed pressure on firms to optimize, transform and reevaluate their business models. Broadridge is uniquely positioned to help firms adapt to market structure changes by mutualizing costs and capabilities while sustaining premium service in operations and technology. As a result, more than 30 firms in total, including Bloomberg Tradebook and Societe Generale, have contracted with Broadridge to manage all or part of their post-trade operations.

"We recognized many years ago that this would become a serious pressure point for financial services firms, and today we're leveraging our state-of-the-art technology combined with our unique industry insights and expertise to optimize, transform and enhance the speed to market for our clients. This is an increasingly important offering as firms struggle to comply with enormous regulatory challenges while also freeing up investment dollars to accelerate revenue growth," said Mike Alexander, President, Broadridge Business Process Outsourcing. "Given Broadridge's scope, scale and growing global banking clientele, we have become the de facto industry standard in managed services for post-trade processing."

The customized service offers a unique combination of experienced operations staff and process expertise with Broadridge's award-winning technology. Scivantage, a Global FinTech 100 technology provider, recently selected Broadridge as its exclusive provider of reconciliation managed services to its 17 clients. Across the industry, Broadridge handles 4,000 reconciliations daily.

"Regulatory compliance, cost mutualization and operational risk management are the three major concerns for financial services firms globally. Broadridge's global technology and operations solutions provide a comprehensive menu of middle- and back-office services that are multi-currency, multi-asset class and multi-geography," said Arun Sharma, Chief Operating Officer, Global Technology and Operations Solutions, Broadridge. "Our managed service is best-in-class and trusted among the leading regulatory authorities globally due to the reputation we've built over the past five decades."

"There is constant pressure for firms to comply with costly regulations while also continuing to make investments and grow revenue. Broadridge clients tap into the firm's expertise, scale and flexibility to address escalating post-trade processing expenses, leverage industry best practices to minimize operational risk, and allow them to focus on evolving their business models," said Andy Efstathiou, Research Director, NelsonHall.

For more than 50 years, Broadridge has been helping financial firms across the capital markets, investment management and wealth management businesses transform their business models by outsourcing operational functions to transfer operational risk and reduce cost."

[igoe104] 16/9/2014 12:38

I can only see these going a lot higher looking at the p/e, (Mar 2015, 8.3) I also expect more good news over the closing months of the year.

[tkb123] 16/9/2014 12:25

Bought 20,000 (at 13p) which probably explains why it is showing as a sell?

[rivaldo] 16/9/2014 06:46

Yep, good to see the new FD buying £15k's worth of shares within days of his appointment. He must have been convinced quickly! FD's don't normally go around splashing the cash...

I also notice that his options have a 13p exercise price, so if he wants to make any serious money the share price is going to have to be well above 20p for him to benefit to any serious extent.

[igoe104] 15/9/2014 17:03

Nice to see the FD buying shares.

Nigel Gurney, Financial Director, bought 110,000 shares in the company on the 15th September 2014 at a price of 13.50p. The Director now holds 110,000 shares

[rivaldo] 09/9/2014 12:05

Moving up nicely. Particularly good to see small sells getting almost the mid-price now, hopefully indicating background demand out there.

[rivaldo] 05/9/2014 07:23

LRM are pushing for growth in Asia:



"Lombard Risk, as a major supplier in the field of automated regulatory reporting, is pleased to host an important series of events which underscore the scope and pace of regulatory change impacting banks and other financial institutions in the Asia Pacific region.

As regulators internationally have scrambled to close the door after the horse has bolted, firms in Asia have been, to an extent, less exposed to the risks which European and US sectors had engaged in. However, Basel III and an array of other regulatory changes including derivatives transaction reporting, risk data aggregation and other drivers are changing the landscape in Asia Pacific come what may.

More and more firms are considering the need for strategic solutions to their requirements and considering, at the same time, which match the main incoming regulatory demands, especially around liquidity reporting and risk management, and for supervisory disclosure.

Join Lombard Risk for this essential series of easy-to-access webinars designed to help busy executives understand the issues and consider solutions to these. We will be looking at Singapore, Hong Kong and China in the overall regional context:
•Singapore: Tuesday 30th September 2014
•Hong Kong: Tuesday 7th October 2014
•China: Tuesday October 14th 2014

Other dates include: EU Liquidity on 9th October and US Basel III on 28th October

China – Liquidity Coverage Ratio (LCR) and other important changes

In this webinar, we will focus on the China market, where the key changes are around the introduction of increased liquidity requirements. These are coordinated with the introduction of the Liquidity Coverage Ratio (LCR) internationally in 2015.

This webinar’s specific focus:
•Basel III implementation and outcomes to date
•Chinese regulators’ recent consultations regarding liquidity – who is impacted, why and when
•Scope of application – how to respond
•Reporting changes /updates and LCR – now to the detail!
•Finalisation of LCR for China – when and what to expect?
•Choosing, where you have a choice, the MLA or LCR – a review of these options
•Implementation challenges – typical project activity needed before go live

etc"

[rivaldo] 03/9/2014 13:44

Hardman's monthly newsletter for September is just out - there's a one page note on LRM with a brief update as follows - note that the upgraded forecasts for this year are 2.1p EPS with a 0.075p dividend, and £2.3m net cash:



"We anticipate no news in September, with the Interims being due mid October.

New CFO starts 1st September as previously announced. Nigel Gurney will be joining the Company as Chief Financial Officer and is expected to become a board member from 1st September 2014. Nigel was Chief Financial Officer of Merchant Securities Group plc, now the London stockbroking arm of Sanlam Limited and prior to that he was Chief Financial Officer of W.H. Ireland Group plc.

Trading since the year end has been ahead of the same time in the previous year and the Company remains on target to achieve the market growth forecasts for the current year. On the back of the last results we upgraded."

[rivaldo] 03/9/2014 09:29

Ticking up to new recent highs.

Good to see LRM doing lots of presenting around the globe:

[igoe104] 29/8/2014 14:08

Lombard Risk Reporter adds support for multiple concurrent taxonomies.

Lombard Risk Management plc (Lombard Risk), a leading UK provider of end-to-end European Banking Authority reporting automation, and automated XBRL tools in this market, has comprehensive support for multiple versions of XBRL taxonomies at the same time.

[rivaldo] 19/8/2014 14:15

Good to see a couple of 60k buys causing the price to tick up.

EDIT - maybe next time :o))

[simon gordon] 14/8/2014 16:46

Eight months is all he lasted. The other guy who was meant to be joining him from MISYS never actually joined LRM and remains at MISYS.

If I was a holder he'd be a great guy to track down and question on how he sees LRM's future. If you pay a fee at LinkedIn you can send him an email.

[mrpotatohead] 14/8/2014 10:25

I see on linkedin that group sales director simon parkins has left, no announcement though.

[rivaldo] 12/8/2014 09:31

RNS issued - Liontrust have substantially increased their shareholding and now hold almost 6% of LRM with 15.66m shares:

[rivaldo] 08/8/2014 07:13

Indeed - imo IQE's valuation is now in real bargain territory.

I noticed that Broadridge, LRM's US partner, produced terrific results last night and raised estimates this year. I couldn't see any specific references to COLLINE in the subsequent conference call transcript:

[techno20] 07/8/2014 21:26

Hi Rivaldo - a bit of blue from LRM rescued what was looking like another lousy day. The constant attrition at the likes of Gbo, Blnx, iqe takes its toll after a while!

The latter I bought last week. It came down to either IQE or CAR. Wrong call again!

Hopefully LRM will be testing January's high soon, which will make up for at least some of the pain elsewhere.

Techno

[rivaldo] 07/8/2014 21:10

Interesting late tick-up - new recent highs now, so encouraging from a chart perspective.

[techno20] 04/8/2014 21:42

Latest comments from HardMan&Co below....

Lombard Risk Management (LRM)
The AGM took place on 9th July. As anticipated post the may upgrades, the formal statement was on forward trading was in line. Results announced on 13th May led to upgrades so we remain confident.
"Trading since the year end has been ahead of the same time in the previous year and the Company remains on target to achieve the market growth forecasts for the current year. These growth expectations are supported by recent new licence wins and additional new orders won with existing customers. A major milestone was reached recently with the successful transmission on 30th June of XBRL reports to the UK regulator for a significant majority of our UK clients for the European Banking Authority's COREP. The number of clients using us for COREP is now over 100. We expect, as in the previous two years, that revenues for the year will be weighted to the second half."
We recently upgraded and maintain those higher estimates. We raised sales FY15E 6% to £22.5m. 61% is recurring revenue plus the order backlog, a strong ratio. Indeed in FY14 there was a strong focus on entirely new business so order book conversion and underlying trend of repeat work and projects should do well in FY15E. We also have strong anticipation based on extending FY14 'beach-head' wins for growth in North America and Japan. We upgraded FY15 profit numbers: FY14 achieved £4.4m; we had estimated £3.8m. We upgraded FY15E from £4.6m to £5.0m.
A new Chief Financial Officer, Nigel Gurney, was announced as being due to start on 1st September.
Investment for the future: Technology spend has been increasing, development capitalisation alone running at 26% of growing sales in FY12, FY13, FY14. Technology spend stood at £7.1m, up from £4.5m in FY12.

[rivaldo] 31/7/2014 12:05

There's a number of positive noises in this new press release re expansion:



"Lombard Risk expands team to meet demand for compliance assessment solutions as regulators introduce attestations
London - 31 July 2014

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are introducing signed "regulatory attestations"

Lombard Risk Management plc (LSE:LRM), a leading provider of integrated regulatory compliance and reporting, and collateral management solutions for the financial services industry, announces the appointment of George Leckie as part of an ongoing expansion to meet demand for compliance assessment solutions.

George Leckie joins the Lombard Risk compliance team, based in London, to lead sales and business development for ComplianceASSESSOR. Over a 25 year career in software solution sales, George has worked extensively with both the direct and indirect channels meeting the needs of customers in both the private and public sector. Prior to his appointment George had led new business and strategic account management for LRN, a leading ethics and compliance education and assessment solution provider in Europe.

George Leckie says: "I was attracted to join Lombard Risk's compliance team because of its excellent reputation for providing financial institutions with regulatory reporting and compliance solutions.

My view is that firms must not see compliance as something problematic and a burden, but rather a way of business life that fosters a better, more productive and secure environment. In the words of Dov Seidman, who has been a significant influence in my career: 'How we do anything means everything'. I see Lombard Risk's ComplianceASSESSOR solution as a tool that helps firms channel actions and decisions in order to thrive uniquely within today's new realities".

David Wilford, Director of Compliance Products at Lombard Risk, says:
"We welcome George to the team as he brings significant experience not only in providing compliance solutions to highly regulated firms but in business ethics, the mainstay of a first-class risk and compliance culture that the regulators are now seeking to impose to improve business conduct."

Having stabilised the financial soundness of institutions in the financial market place, the regulators – led by the FCA – are now focusing their attention on conduct, holding senior management both personally and collectively responsible for non-compliance with laws and regulations through the use of regulatory attestations.

The demands on compliance functions are set to increase further with senior management demanding even more information on the state of the firm's compliance before agreeing to the terms of an attestation request and subsequently appending their signature to attestation documents.

Lombard Risk ComplianceASSESSOR enables a firm to assess the level of compliance with all applicable laws and regulations at any level thereby providing senior management with the necessary information and confidence before ATTESTING to the state of compliance.""

[2vdm] 13/7/2014 16:57

Let's hope TW is right. I've followed his advice before ang got badly burnt. That being said, I've been a LTH of LRM and if you can overlook the way they have capitalised R&D in the past I still like what I see, but this is not for short term players imo.

[rivaldo] 11/7/2014 07:38

Yep, good to see the 20p price target:



"Thursday 10 July 2014

Lombard Risk Management (LRM) has issued a trading update that it "remains on target to achieve the market growth forecasts for the current year... supported by recent new licence wins and additional new orders won with existing customers" as well as announcing the appointment of a new Chief Financial Officer, Nigel Gurney.

Forecasts are currently for a reported full-year pre-tax profit of £5 million on revenue of £22.5 million, up from a prior year £4.42 million on £20.40 million. I note 'reported' since significant investment costs are capitalised here - £4.22 million more than depreciation + amortisation last year, with the company then commenting "we expect research and development costs to reduce in the 2014/15 financial year as a percentage of revenues but at the same time it would be very short sighted not to invest in our future growth".

As noted in our analysis of those previous results, the issue of capitalisation of R&D spend is one we grappled with but ended up concluding that the growth outlook looked to leave plenty of scope for growing free cash generation as well as continued significant investment in R&D. With today's trading update following the results statement noting continued "significant opportunities in our markets" as "the unrelenting macro-regulatory environment in the financial industry persists", we remain of this view.

Following the previous Finance Director's resignation in February, the new appointment is reassuring – with Nigel Gurney a qualified chartered accountant and currently Chief Financial Officer at specialist independent banking company Lepe Partners LLP, with prior CFO experience from Merchant Securities and W.H. Ireland.

A current 12.75p-13.5p share price, is marginally ahead of the 12.25p share price (offer natch) at which the shares were tipped on our Nifty Fifty website – and we continue to see good upside from a current circa £35.5 million market cap, particularly on a trade sale valuation basis. At up to 14p, the shares remain a buy – target price 20p."