13th May 2014 10:31
LONDON (Alliance News) - Lombard Risk Management PLC Tuesday reported a 13% increase in full-year earnings, boosted by a strong second-half revenue showing, as increased regulatory activity enabled the integrated collateral management, regulatory compliance and reporting software provider to grow.
In a statement, Lombard Risk Management, which is comprised of a risk management division and regulatory compliance division, reported a GBP4.4 million pretax profit for the year ended March 31, compared with GBP3.9 million a year earlier. Revenue grew by 22% to GBP20.4 million - with GBP13.1 million coming in the second-half - while administrative expenses increased by 25% to GBP15.8 million.
Although the rate of increase in revenue was outpaced by that of administrative expenses, the cost of making sales fell by 18% to GBP164,000, resulting in a better gross profit margin. Finance expenses fell by almost half, to GBP44,000.
New European rules for the financial services industry have been a boost to Lombard, which provides software to help firms comply with the regulatory environment. Lombard Risk Management said it closed 34 new contracts to provide its product for COREP, the European Banking Authority?s common regulatory reporting framework.
"We have entered the new financial year with recurrent revenues at another all-time high of around GBP8.6 million, our highest ever year-end level of order book at GBP5.2 million, and with a good sales pipeline," John Wisbey, chief executive, said in a statement.
"There is continued new European regulation in the UK beyond COREP, such as FINREP and Asset Encumbrance, and also regulatory change in several of the countries in which we operate," the CEO added.
"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," Wisbey said.
Meanwhile, Non-Executive Chairman Philip Crawford said Lombard Risk Management is "actively" seeking a chief financial officer to replace Paul Tuson, who departed in May after serving three months' notice.
Lombard Risk Management increased its full-year dividend to 0.075 pence a share, from 0.065 pence.
Lombard Risk Management shares were Tuesday quoted at 11.05 pence, up 4.0%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Lombard Risk Management