|Lombard Risk Management
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Lombard Risk Management Share Discussion Threads
Showing 1376 to 1400 of 1400 messages
|PE = Private Equity|
|Does that mean share price reaching a neutral PE, i.e. removing the discount?|
|every chance of a PE take out|
|Turned out nice again...........
|Up, up, up we go...look like even a highly respected Baillie Gifford fund manager has £1.5m in pa..............|
|Ah nuts, I guess the cheap shares couldn't last forever! Methinks this won't be 'under the radar' an awful lot longer. Hope you all did well filling your boots.|
|Simon Thompson just covered again rating the shares a strong buy.
|Is regtech the new fintech?
Machine learning, big data and cloud computing are helping governments and financial institutions transform regulatory practices
With mobile apps, banking automation and blockchain already transforming financial services, financial institutions are now looking to regulation technology, or regtech, to meet compliance requirements.
"regtech also offers financial institutions the opportunity to introduce new capabilities designed to leverage existing systems and data to produce regulatory information in a cost-effective, flexible and timely manner. Advances in regtech have enabled many companies to dramatically transform regulatory practices."
|Nice. finnCap reiterate 16.5p target. Needs revising up imo.|
|Shares mag also bullish
|ED write up:
Founded in 1989, Lombard Risk Management (LRM) is a leading provider of specialist regulatory reporting (47% H1’17 revenues) and collateral management solutions (53%) employing around 280 staff. These niche solutions are used by >340 institutions, including 30 of the top 50 global banks. 40% of revenues are recurring, coming from annual maintenance and support agreements, while 58% is denominated in non-sterling currencies.
Many bank executives often complain about the reams of financial red-tape, but not so Lombard Risk. This morning LRM delivered an update on what can only be described as a ‘phenomenal217; set of results – reporting that FY17 turnover, EBITDA and net cash will all be substantially above our estimates at £34.0m-£34.4m (vs ED at £31.8m), £2.4m-£2.8m (-£0.4m) and £7.0m (£1.4m) respectively.
Not only did H2 revenue climb 45% to circa £19.0m, surpassing the 43% achieved in H1 (£15.2m), but also, thanks to tight working capital and strong license sales (~£7m H2 vs £4.4m H1), H2 cashflow was positive at +£0.1m (vs ED -£4.5m), split -£1.6m Q3 vs +£1.7m Q4.
Once again the top line enjoyed buoyant demand for COLLINE (ED est 65% YoY), its best-of-breed Collateral Management software, especially ahead of the introduction of new Dodd Frank and EMIR (IOSCO) regulations on both sides of the Atlantic. This was ably supported by double digit expansion (ED est 25%) in Regulatory Reporting, forex tailwinds (£ weakness), and two major product launches (re AgileREPORTER and AgileCOLLATERAL).
These numbers show that H1’s numbers were not a flash in the pan - backed up by an even more impressive H2, with strong demand for LRM’s applications expected to continue for the foreseeable future. They also remove any lingering investor concerns that the business might need to raise fresh capital to fund its future growth plans. In our view, there are ample liquid resources to navigate through the severest of conceivable storms.
Progress is a stark reminder how materially undervalued the stock appears. Both on an absolute basis vs our new 26p/share valuation (20p before) - and relative to software peers, trading on a forward EV/sales multiple of 0.9x. That is despite being EBITDA and cashflow positive, along with generating organic growth significantly higher than the sector average.|
|Surprised we are not up 20% today, maybe a seller to work through, judging by the volume, should build towards and after results..20p|
|Well that means that H2 traded around £19 million up from £15m H1. The pipeline is strong so we should anticipate the next year to be considerably in excess of £40 million revenue. Quite possibly now a very real takeout target with the growth and customer base, more likely towards the the beginning of H2 next year. Pure play outsourcers are looking hard for businesses like this.|
|Thanks Brummy_git..worth reading the note.Unfortunately cant paste here due to poor formatting.
Lombard Risk signals a record year
It looks like it’s been a good year for Lombard Risk, the provider of integrated collateral management and regulatory reporting solutions. After a good first half with revenues up 41% and order book ahead by 35%, the company’s management now expect revenues of between £34m and £34.4m for the year to March 2017, an increase of around 40% on the previous year. EBITDA is also forecast to be up strongly, to £2.4-£2.8m, this figure also being ahead of market expectations.
The new management team have made substantial progress over the past year or so (see Mr. Brown goes off to town…) and their hard work can be seen in these figures. The business had a big clear-out in the first half last year and has focused on two major products in collateral management and regulatory reporting. The market background is also very positive as these are both important areas where investment companies are looking to modernise their systems to cope with ever-increasing oversight and tighter margins. New cloud-based variants of the solutions have opened up a new raft of potential customers and more partnerships (with Oracle and Atos) and a push in the US has broadened and strengthened the customer base.
The result of this progress is a much more robust and predictable business that is unlikely to suffer from the regulatory delays and contract postponements that had stalled progress in 2013 and early 2015 (see Regulator and contracts trip up LRM, again). Cash balances stand at £7m, after an £8m placing in June and the company looks set fair for another year of profitable progress. We’ll learn more about this transformation when the full results are published on 24th May.|
|bought some yesterday - just lucky timing but company looks to be moving in the right direction and at leat meeting market expectations. IMHO.|
|EM ..thats nonsense.It is a valid metric to measure the underlying opertational performance....irrespective of its size.What does it have to do with what they are spending on R&D?|
|New research out this morning from Equity development. Valuation increased from 20p to 26p per share
If they stay on course for 2019 forecasts they might actually produce some cash flow in a year or two. I'll believe it when I see it ;)|
|Webinar - post 799 and plenty of other posts subsequent to this reference it :)|
|With respect Nurdin EV/EBITDA is utterly meaningless for a company of this size that is spending £7.5m of R&D.
Better numbers may lie ahead for LRM if they can keep growing the top line but they have produced rotten cash flow for years and years.|
|As you say working cash and collection of debts must have been good in H2 to maintain cash levels but EBITDA was reduced to £0.9m-£1.3m in H2 on sharply increased turnover and Cap R&D increased to £4.7m so a fairly chunky loss for the half.|
|EV/EBITDA around 12x which is petty cheap for a growth company imo|
|Software Products need three things: firstly to have a very clear need in the market, secondly to be developed to secure that need for the future and thirdly a ready ability to supplement license fees with fees for implementation and client driven change. It looks like Lombard have all these bases covered. I have run several software businesses successfully. These guys are doing the right thing and doing it well. I am invested!|