Lombard Risk Management Share Discussion Threads

[eezymunny] 16/10/2014 08:57

Do me a favour Riv.

Yes "Net cash generated by operating activities in the 6 months was £1.8m" is true but there was the benefit, as I say, of a £1m w/c inflow. So op cash flow b4 w/c movements was c. £0.8m and then the usual capex of R&D £2m. Giving an outflow on any basis worth discussing (IMO).

Revenue was down from £13m to £9m half on half. Maybe there's some seasonality but that's hardly spectacular.

Not without some merits LRM but I remain of the view that, for now, they are not really making any money.

As I've said b4 may get taken out and you do well from them but not my cup of tea at this time.

[rivaldo] 16/10/2014 08:42

Compare like with like given the H2 seasonality, i.e year on year, and net cash is up to £2.2m from £1.75m.

Net cash generated by operating activities in the 6 months was £1.8m.

Capitalised development costs were £2m, down from £2.3m last year, and I'd expect that to continue to drop over time against a continued improvement in cash inflows.

Above all:

- large recurring income
- client base including 30 of the 50 top banks in the world
- optimism going forward driven by the regulatory environment

give LRM healthy investment attraction and potential imo.

[eezymunny] 16/10/2014 08:19

The usual clap trap if you ask me.

Cash flow negative despite a £1m working capital inflow, no?

[techno20] 16/10/2014 07:55

Agreed Rivaldo

The Corep land grab has clearly been hugely successful and must offer significant cross sell opportunities moving forward.

Nice to see cash up, debt and capitalisation levels reduced.

All in all looking solid for a strong outturn for the year.

Techno



d

[rivaldo] 16/10/2014 07:34

Good results in the much seasonally weaker H1. Revenues are hugely up, with the £0.8m EBITDA much improved over last year, and with a very bullish outlook for this H2:



Nice increase in the divi too, with net cash increasing to almost £2m.

There are lots of regulatory opportunities coming, and I like the way LRM are poaching clients from competitors.

With large recurring revenues, and the Board "optimistic" about H2, things are looking pretty healthy here imo.

[mrpotatohead] 13/10/2014 22:17

Understood techno, but last year they had a £2m+ licence deal plus services for colline in the second half and the corep product was also completed/delivered in the second half so licence revenues were recognised. It is not the same this year. Obviously there could be another materially big deal and some commentary on the pipeline would be helpful. Also helpful would be the sales order backlog figure, which has been quoted in recent announcements.

[techno20] 13/10/2014 17:34

Here's the AGM statement....

"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.

[mrpotatohead] 13/10/2014 13:59

techno - why should the numbers be second half weighted?

[techno20] 13/10/2014 12:01

They've held up well, so not surprised its dropped back slightly. Lots of very nervous pi's.

Doubt they'll hit £11m. Still expecting no's to be H2 weighted.


I'd be very pleased if they hit £10m.
Techno

[mrpotatohead] 13/10/2014 09:32

always seems to drop pre results. to maintain growth this year, should be looking for 11m rev in first half ....... and positive cash generation.

[igoe104] 13/10/2014 09:18

Interims on Thursday, so strange time for these to drop especially when they are flagged to be very good.

[techno20] 04/10/2014 10:35

Level of recruitment suggests things are busy across the globe....

Current roles at Lombard Risk

Lombard Risk is experiencing rapid growth and is keen to attract individuals with relevant expertise and drive to join the fast-paced, customer-focussed environment at Lombard Risk

We are currently seeking professionals for a range of roles around our global operation. If you feel you would like to join this growing, busy, friendly company please send your CV with a covering letter (quoting the Job Reference number) to [e-mail]

STRICTLY NO AGENCIES – WE DO NOT ACCEPT UNSOLICITED CALLS FROM RECRUITMENT AGENCIES

EMEA region

London office location HERE >>>

LONDON – Job Ref No 166 – Business Analyst

LONDON – Job Ref No 258/259 – Front-End Web Developer

LONDON – Job Ref No 266 - User Interface Designer

LONDON – Job Ref No 230 - Business Analyst

LONDON – Job Ref No 227/229 - Technical Architect

Americas region

New Jersey and New York offices HERE >>>

USA – Job Ref No (0) – Java Technical Support

USA – Job Ref No (194) – Client Support Manager, Americas

USA – Job Ref No (196) – Programmer Analyst

USA – Job Ref No (200) – Collateral Business Analyst

USA – Job Ref No (201) – Technical Consultant



Asia Pacific and Hong Kong region

Shanghai, Singapore and Hong Kong offices

HONG KONG – Job Ref No PSG HK - Junior Technical Consultant

SHANGHAI – Job Ref No 173 – Test Engineer

SHANGHAI – Job Ref No 181 – Senior Software Developer (C++)

SHANGHAI – Job Ref No 185 – Senior Database Architect

SHANGHAI – Job Ref No 193 – Senior Support Engineer (L2)

[rivaldo] 01/10/2014 08:31

Interesting 36k buy at 13.7p - the price ticked up immediately and is almost at new recent highs. EDIT - oh well...

[mrpotatohead] 29/9/2014 14:15

yes, should be good

if the revenue growth is to increase for the full year, you could expect the first half this year to smash last year as there should not be the same reasons for a much bigger second half this year.

[rivaldo] 29/9/2014 07:29

RNS - interims will be out in just over 2 weeks on 16th October.

Given the July AGM statement I'm looking forward to them - they should certainly look good year-on-year:

[igoe104] 26/9/2014 08:21

Paulypilot, LRM should be making 6.3 million pre-tax for march 2016 (18 months away) that`s a p/e of 6.6.

Not bad for a small Aim company in a fast growing market, and in a market where there are lots of upcoming regulation changers.

[hpcg] 26/9/2014 06:50

Thanks pp - I picked this up on a screen and hadn't got around to doing any due diligence yet. I'll closely look at the cash flow. Having said that, if there is genuine R&D I don't mind that being capitalised so long as the amortisation period is aggressive enough. If it is 3 years straight line for example then the effect on profit would be zero for years after end of year 3 as the total amortisation would be the same as the expense for the current year. Equally obviously EBITDA is still useless as a metric since it excludes A. In which case even using EBITDA in the first place is a red flag so I may never get around to checking up.

[rivaldo] 26/9/2014 06:35

Cheers igoe, good news. This also reads well:

"I am thrilled to manage the company's strategic drive in the region, executing upon our ambitious growth plans, both in staffing and revenues."

[igoe104] 26/9/2014 00:06

Lombard Risk Promotes John Groetch to Managing Director for the Americas



I like this bit.

We expect the Americas to continue to be a fast-growing market for us and are particularly keen to be able to capture more of the regional regulatory, collateral management and compliance opportunities that exist."

[cwa1] 24/9/2014 07:52

Morning

Apologies for the off-topic but I've just seen that "traders" prog. from BBC2 mentoned above. Shudder! Don't think I'd let any of them near my hard earned :-)

[techno20] 24/9/2014 07:47

Thinking about the release, it's quite unusual for firms to explicitly knock competitors. Suspect Wolters Kluwer won't be overly impressed.

Perhaps a conscious decision to drive them back to the negotiating table???

Long shot, I know.

Techno

[techno20] 23/9/2014 22:30

Thanks Igoe, I had been getting slightly nervy that we'd not had any larger deals announced and disappointed to see Nationwide BS choosing Axiom a couple of weeks back, but the tone of this release is very upbeat.

Not too long before the next set of results. Let's hope the new business is not requiring lots of expensive contractors to deliver!

Techno

[rivaldo] 23/9/2014 16:00

Ha! Yes, I watched it too. Gordon Bennett, "gamblers" is too true - all bloody charting, graphs and no knowledge whatsoever of whatever they were investing in. Hope those old blokes sold all their ASOS in the end - didn't sound like they did!

It was nearly all forex and extreme day trading - not rational investing. I could not imagine a more stressful, random or pointless existence than trying to make a few quid every few minutes in that fashion.

Good luck to the two black guys, who seemed on the surface to have hit on a winning technique and good contacts - who'd have thought a minor footballer like Leon Best would have such a lifestyle of the rich and famous!

[igoe104] 23/9/2014 14:22

Yes Rivaldo the influx of new business is the most exciting bit.

Ps did anyone see traders on bbc2 last night what a bunch of clowns, (all clueless gamblers,) one guy had every chart/screen up in the world and only make £10 in two months.