Lombard Risk Management Share Discussion Threads

[philjeans] 09/11/2016 12:50

Yes - somebody buying these!

Chart shows miles of blue sky ahead.

BUY the dips.

[tell it as it is] 09/11/2016 12:41

Share price fifth highest riser on London market today. Not clear the US election result would make that much difference to the company.

[paddyfool] 07/11/2016 22:49

Thats tuff about IT contractors is entirely accurate, hence its a great idea to grow your own!

[tell it as it is] 02/11/2016 22:38

Not sure where that stuff about IT contractors comes from. They are engaging third party contractors now on a scale never before seen by the company with the result that some of the critical business knowledge will transfer to other firms when the contracts are over. This is a key reason for the cash burn.

[paddyfool] 02/11/2016 13:06

I think you will find that they have had to rely on IT Contracting staff, these people would have had to have had a combination of high tech skills and domain knowledge. The domain knowledge would have been rare and expensive. The relative scarcity of these resource drives the price up and ultimately limits the ability of the business to grow. So having and growing your own capability enhances your margins and allows you to scale. It sounds like a great idea to me. I have run niche software businesses and believe me this is the right way to go for ultimate shareholder value.

[aishah] 02/11/2016 10:29

yes, recurring revenue strength and an order book of £9.2m. CEO bought 540,540@9.25p and CFO 168,961@9p. Keep adding imo. dyor

[philjeans] 02/11/2016 10:03

heading for 15p - you missed the 1!

Profit not so important currently - building up the sales and pipeline IS!

[tattooed93] 01/11/2016 22:34

heading for 5p

[cockerhoop] 31/10/2016 14:10

There's no point in having a presence in this space if you don't make any money and they don't.

[paddyfool] 31/10/2016 13:41

All outsourcers/service providers want to be in this space...very few have a presence.

[aishah] 31/10/2016 09:37

Respected newsletter Techinvest have added another 100k to their portfolio at 8.75p. Hardly surprising given the strong prospects from the risk and compliance sector. dyor

[philjeans] 31/10/2016 09:09

Going well - and blue sky for miles!

[paddyfool] 24/10/2016 15:37

Its all about FRTB now. These guys will enable institutions to meet these nascent but compulsory requirements, current view is that hey are arriving in 2020. Institutions need to prepare now. There are few if any offerings that meet this need holistically.

[aishah] 21/10/2016 14:37

In an interview with Proactive Investors, Alastair Brown said the first half performance positioned the company well for the future.

He highlighted three operational achievements, the first of which was the launch of the cloud-based collateral management system, AgileCOLLATERAL, an “out of the box” product that would put Lombard’s flagship collateral management system within the reach of all buy-side market participants.

Meanwhile, development of the AgileREPORTER compliance product continues apace. The product is being offered as part of the analytics suite sold by database software giant Oracle, which is "a very important partnership for us", though plans are also in the pipeline to sell the product directly to North American customers.

“Five clients are now live with Oracle, and we’ve got a positive pipeline,” Brown revealed.

The third achievement was the impending opening next month of the company’s state-of-the-art software development facility in Birmingham.

[eezymunny] 21/10/2016 12:41

I guess whoever SOLD them isn't as confident as the buyer.

[philjeans] 21/10/2016 12:24

Another nice confident BUY just now of 500,000 shares.

Chart suggests we'll get to 12p again before long.

Business now has momentum.

[aishah] 21/10/2016 09:23

Yes.

New Lombard management delivering - hxxp://www.sharesmagazine.co.uk/news/shares/new-lombard-management-delivering :

Investors are toasting Lombard Risk Management (LRM) as it reports record revenue of £15.2m in the six months to 30 September, driven, appropriately enough, by the risk management division.

Shares in the red tape and risk management software supplier are trading 18.6% higher to 8.6p.

The impressive numbers are a big tick in the box for a recently installed management as Finncap analyst Lorne Daniel explains.

'The new management team has proven its point by delivering a record set of interim results as it begins to transform the scale and opportunity for this business on the back of the June fundraising.'

Alastair Brown took over as CEO in December 2015 and the company raised £8m in a placing in June.

Revenue in risk management is up by 63.1% to £8.1m, helping overall revenue climb by over two-fifths compared to 2015. There were other bright spots, revenue growth was particularly promising in North America, for example, up by 50.1% to £5.2m.

Revenue from contracted future work has climbed from £6.8m to £9.2m, while sales rose 58% and software sales soared by more than 100%.

Rob Warensjo from independent research firm Megabuyte says the only disappointing aspect of the half year results is a decline in recurring revenues as a proportion of total revenue.

EBITDA has tripled from £0.5m to £1.5m, while loss before tax fell significantly from £1.8m to £0.1m over the same period.

As of 30 September, the company has cash of £6.9m and no debt.

[philjeans] 20/10/2016 19:52

Always a good sign when the CEO AND the CFO buy shares!

Looking good here.

[aishah] 20/10/2016 10:48

TechMarket view:
Strong growth at Lombard Risk & no identifiable impact from Brexit

Lombard Risk Management is reaping the rewards of the changes made to its executive team and core focus last year (see here and work back). Its first half results reveal an encouraging picture as it benefits from strong growth in the Governance, Risk and Compliance sector.

Revenue in the first half to end September was up by 41% to a record £15.2m; the order book for contracted revenue is up by 35% to £9.2m and annual recurring revenue is 22% higher at £6.1m. Profitability also improved: EBITDA in the first half was £1.5m compared to £0.5m in 2015 and pre-tax losses lessened to just £0.1m (2015: -£1.8m).

It has been a very busy first half for Lombard Risk, which is showing some strong momentum as it invests for growth. During the period it also raised £8m from an equity placing (it now has cash of £6.9m and no debt); launched its cloud-based collateral management system (see here) and signed two new clients for AgileREPORTER as part of its strategic alliance with Oracle.

It’s also worth noting that the AIM-listed provider of integrated collateral management and regulatory reporting solutions has yet to experience any identifiable impact on its business from Brexit. Lombard Risk’s business is spread across North America, EMEA and Asia Pacific and 58% of its revenues are non-sterling providing a natural hedge against the potential impact of Brexit. And whilst European clients “paused to reflect post the referendum result”, Lombard Risk has found they quickly returned to normal project activities. In fact, because of its core focus Lombard Risk is more likely to benefit from Brexit longer term than many other SITS players in the financial services space. Its sales are driven either by non-negotiable regulatory timetables or by banks’ desire to reduce operational costs and risks, pressures which will only be amplified by any impact of Brexit on European economies. Moreover, it would also benefit should Brexit introduce more diversity into the regulatory landscape (although Lombard Risk considers this unlikely at the moment).

All things considered, with the company’s transformation largely complete, Lombard Risk’s new management team is right to face the second half of the year with optimism.

[eezymunny] 20/10/2016 10:45

hxxp://www.shareprophets.com/views/24652/lombard-risk-management-headline-blather-excellent-but-hidden-cashburn-terrifying

Sums it up perfectly IMO!

[sophiegb] 20/10/2016 10:01

new video at Proactive Investors is here:

[philjeans] 20/10/2016 09:19

Very encouraging report this am - all going well and prospects look much better.

BUY for me.