Lombard Risk Management Share Discussion Threads

[tell it as it is] 23/10/2015 08:08

All investors like a return, whether income or capital gain. Some like income as well as capital gain, while others require it to hold your shares. If you cut a senior employee's cash bonus and replace it with a 5 year deferred equity comp plan he or she may leave. Same applies to some shareholders and with less buying and more selling the share price will suffer. Poor economics for other shareholders. Most companies strike a balance between bonuses and dividend payouts.

[williambrown1] 23/10/2015 07:34

My comment relates to sound investment theory.

If a business is starved of capital such that it requires a capital raising to fund development and operations, does it make sense to then pay a dividend?

Logical argument strongly suggests no. You dilute shareholders at 10p to raise cash, you then give that money straight back to shareholders without deploying it?

If the company executes this decision process will have negatively impacted shareholders.

[tell it as it is] 23/10/2015 07:12

mrpotatohead - Sure there are lots of people close to the company on this board, and perhaps they would all do well posting in their own names. Anyone might think you were PT the former FD !

[mrpotatohead] 22/10/2015 23:59

Tellitasitis ...you must be wisbey it is obvious from all your posts this stock and others. Best be open about you thoughts, better respect that way.

good luck for you and us other holders; results today were never going to read that well .... onwards

[tell it as it is] 22/10/2015 17:53

I fat fingered the like button for the "williambrown1" post and now it seems I cant reverse that - annoying as in fact I dislike it. There is certainly a view from the arrogant that boards know how to invest shareholders' money better than shareholders do themselves, and that bonuses that are paid to directors or even the most mediocre senior employees are a better use of shareholders funds than paying dividends, but I doubt that LRM shareholders would generally agree. A lot of investors on AIM appreciate receiving dividends and there are some holders eg IHT Trusts who are not ALLOWED to invest in stocks that don't pay a dividend. Hopefully you are not worried that the company is about to be shipwrecked which is the only reason I would agree with you.

[igoe104] 22/10/2015 14:19

I DO like this part of the statement.

Kieran Lees, Global Sales & Marketing Director, says: "Our first half results show significant revenue growth and dramatic increase in new order bookings. We have seen a substantial increase in orders from new customers, in both our risk and regulatory businesses. This growth underlines the continued trust that the market has in our portfolio and ability to provide value to our clients. Our outlook is strong for the second half and we envisage an increasing number of new business and competitive replacement wins both directly and with our alliance partners."

[williambrown1] 22/10/2015 13:15

For the life of me I can't work out why they are paying a meaningless dividend, they raised money and diluted and now they are giving the cash back? Poor logic.

I like the medium term also. It's hard to tell at what point operating leverage will kick in. Are they over spending? Are they not charging customers enough? Are alliance partners squeezing them on margin? I don't know the answer to these questions, but something is holding them back.

If executed correctly they should be able to generate free cash flow and profit which grows with revenue, without sacrificing R&D. A many software company before them has achieved this.

27% of revenue on R&D is large and in line with there story.

I'm willing to give new management the opportunity to execute. This story will take time. Those with staying power might do well.

The other fail safe is they have received acquisition offers before, they obviously have IP in an interesting segment - so they are a ripe candidate.

[igoe104] 22/10/2015 12:21

Also a increase in staff numbers, is a positive sign for gearing up for the increasing of business. unfortunately it doesn`t make good reading at the moment, but medium term it will pay dividend for LRM,( Hopefully)

[igoe104] 22/10/2015 12:13

I`m staying put, I think the next 18 months should bring home the bacon for LRM, the right product at the right time should be the case.

(if they can`t make a buck in this upcoming period they never will.)

Hopefully the oracle deal should provide very good business for LRM and the snippets I keep reading from oracle seem very positive and excited about the reporter product. if a $164 billion company are getting excited about the product, certainly a small cap 31 million should be doing summersaults.

[tell it as it is] 22/10/2015 10:34

It will be good (or at least helpful) to have some new forecast numbers in the market soon. Firstly that allows shareholders to measure what was said vs what was actually delivered, and secondly it's a basic discipline that quoted companies need to have. In particular understanding not just of revenue growth but also of cost growth is important. Then quantifying various components - eg Oracle etc are very exciting but what uplift do management think that will give to revenues and costs and in what timescale ?

[higher aim] 22/10/2015 10:13

Good to see that the statement says that the business has been cash generative in the last 2 months, although not clear if that means cash collection or real trading. But the AGM Statement on 9th July was pretty upbeat talking about a positive start to the new financial year. Hard to see how both can have been correct - or were the last 3 weeks of July pretty disastrous ?

[cockerhoop] 22/10/2015 09:08

I think EezyMoney hit the nail on the head in the last paragraph of Post 612:

'As you say the co may be of interest for its market position. I don't see this being a good performer unless a) they start generating cash or b) are bought out. NOt my cup of tea but you might get lucky.'

[rivaldo] 22/10/2015 08:51

I'd already sold most and sold the rest this morning, at a tiny overall profit.

I just decided enough was enough. LRM does have much promise - the recent tie-ups with Broadridge and Oracle for example - but I can see the share price dropping a fair bit further as the market focusses on the ever-continuing cost capitalisation, cash burn etc.

There may be support at around this level (i.e around the May placing price), or it may be that the placing took a lot of the demand out of the market, leaving the price vulnerable to selling.

Good luck to remaining holders.

[cockerhoop] 22/10/2015 07:52

The most important paragraph imo:

'The capitalisation of development costs has an impact on the interpretation of the financial performance of the Company. Internally, the Company's operating budget and monthly management accounts measure financial performance assuming no such capitalisation. Applying this assumption would result in negative EBITDA for the six-month period of £2.3m (2014: negative £1.2m) and a loss before tax of £2.5m (2014: £1.4m).'

[igoe104] 22/10/2015 07:43

MMMMMMMMMM,

Looks like everything continues about tomorrow, pipeline sounds encouraging, disappointing to see a loss, especially with a jump in revenue.

[igoe104] 18/10/2015 16:54

Oracle, Lombard Risk Partner on Automated Reporting.

Lombard Risk sits on top of our Data Foundation,” said Ambreesh Khanna, vice president, product management Oracle Financial Services Analytics application. “Depending on what report the customer wants to file, the template can pull data directly from the Data Foundation, populate the template with the appropriate data, and, where the capacity exists, electronically file the report with the regulator

[igoe104] 14/10/2015 10:16

It will be interesting to find out what percentage LRM get out of any deals they make with the joint venture with oracle ?

Oracle have a massive contact list, so you have got to expect Application to sell well.

[igoe104] 14/10/2015 09:13

I`d top up here, if I hadn't just shelled out for the wife`s 40th next year. booked to go to the ice-hotel and to see the Northern lights.

If a massive firm like oracle are talking about this it must be a good product.

I feel LRM are one of those firms that could see its share price more than double over night, with the right RNS.

Oh well still got over 25k worth of stock.

With a cap of $162 billion oracle could take over LRM in a heart beat, if the produce does well.

[techno20] 11/10/2015 08:55

Everything has gone very quiet. Probably a good thing given what happened over the summer - just hope the trading position remains as per the TU. The delays in implementation of the AMM reporting requirements til the start of next year won't be helpful, but not sure how much revenue was dependent on this and the delay is not major.

Looks like some of the old guard are choosing to move on - note Rebecca Bond Mktg Director has decided to retire. Presume this decision was taken prior to the appt of Keiran Lees as Global Mktg Director?!

Interims are on the 22nd, so should know more then. Following JW's departure I've chosen to reduce my exposure, but LRM remains a top 3 holding for me. IMV there remains a very high likelihood that the business will be sold in the next 12 months.

GLA

Techno

[higher aim] 05/10/2015 17:18

Both this stock and the bulletin board seem to be in hibernation mode. Lets hope the board of directors is more awake and that when they show signs of life it moves the price up not down.

Has anyone seen a date for the Interims ? Last year they announced on 29th September that the results would be on 16th October.

Has anyone seen any recent broker or analyst numbers ?

[techno20] 09/9/2015 09:41

Good to see something positive in stark contrast to the shenanigans in the board room.

If you wrote the script, I'm not sure anyone would believe it!

They need to get the CEO appointed.

Techno

[igoe104] 09/9/2015 08:13

Just noticed someone posted this on another forum, if a massive company like oracle are posting this on twitter its got to be interesting.

hxxp://t.co/cnfOQ9xzS6


Find a Silver Lining to Regulatory Reporting

When it comes to regulatory reporting, financial institutions feel increasingly boxed in. On one hand, the number, frequency, and complexity of reports continues to spiral, especially for global financial institutions. At the same time, regulators are strongly encouraging firms to spend more time on analysis and review, such as the U.S. Federal Reserve’s guidance that financial institutions spend 80% of the time allocated for regulatory reporting on analytics/reviews and 20% on data compilation. Financial institutions also continue to struggle with data aggregation and quality and, in many cases, the last stages of reporting are often a largely manual process.




While facing growing regulatory costs and complexity, financial services organizations are struggling to realize the positive impact of more rigorous reporting requirements. They are compiling significantly more data for reporting purposes, but do not have adequate time and resources to fully analyze and gain new insight from this data – translating to a missed opportunity.




Oracle Financial Services and Lombard Risk have collaborated to create a first-to-market solution – Oracle Financial Services Analytical Applications (OFSAA) Regulatory Reporting – that addresses these important requirements and helps financial services organizations find a much-welcome silver lining in today’s prescriptive regulatory climate.




Tying Up Loose Ends




Many organizations continue to address regulatory compliance and reporting with multiple, and often non-integrated, point solutions. This reality amplifies data integrity issues and fuels the need for additional manual intervention, especially in the data staging and report preparation areas, which, in turn, leaves less time and resources for analysis.




The growing challenge of data integrity cannot be ignored or minimized. Increasingly, regulators cite data integrity, consistency, and level of detail issues as Matters Requiring Attention (MRAs), which, in turn, has a ripple effect throughout an organization. C-level executives, increasingly uncertain when vouching for data accuracy to regulators, are pressuring lines of business for greater detail and validation, all of which drives greater manual intervention, higher compliance costs, as well as lost opportunities.




To address these issues, simplify compliance, and derive new business benefits from the wealth of data collected throughout their enterprises, financial services organizations must consider regulatory reporting compliance as a holistic process and seek end-to-end automation throughout with an integrated environment that includes:

[igoe104] 20/8/2015 12:45

Decent size 21k buy today, hopefully it shouldn't be too long before we see some upward momentum again.

[rivaldo] 04/8/2015 12:02

Looks like a high quality appointment:



"Lombard Risk appoints Kieran Lees as global sales and marketing director
2 hours ago

Lombard Risk Management plc (Lombard Risk), a leading provider of regulatory reporting and collateral management solutions for the financial services industry, is pleased to announce the expansion of its senior management team with the appointment of Kieran Lees as Global Sales & Marketing Director, based at the company’s London headquarters in Gracechurch Street, with effect from Monday 3rd August.

Kieran Lees joins Lombard Risk with a strong track record of leading significant revenue growth in a range of organisations including Oracle, Sun, NCR and Computacenter as well as smaller firms. Kieran has over 25 years of experience in technology and services leadership positions and joins in this newly created role to oversee and expand the global sales activities of the company. He will report to Philip Crawford, Executive Chairman.

Kieran Lees explains: “The need for control and structure in financial services continues to be a high agenda item for all business leaders, especially those in the banking sector. Lombard Risk has a suite of world-class and market-leading products together with a highly referenceable and loyal customer base. The opportunity to drive the growth of the business and expand the company’s presence world-wide is one that I am very excited about leading.”

Philip Crawford, Executive Chairman of Lombard Risk, commented: “I am pleased to welcome Kieran to the company. He is a recognised leader with a strong track record of success in the IT industry and experience at transforming and leading international businesses across Europe. His proficiency lies at designing and implementing innovative operational and commercial strategies to encourage growth, drive up revenue and improve delivery, whilst introducing root and branch change across organisations.”