22nd Oct 2015 08:10
LONDON (Alliance News) - Lombard Risk Management PLC, which supplies software to the financial services industry, on Thursday said it swung to a loss in the first half of it financial year, as it booked higher administrative expenses and charges for depreciation, amortisation and impairment.
Lombard Risk Management's software is designed to help banks and other financial institutions with their collateral management, liquidity and regulatory reporting and compliance. The company said it swung to a GBP1.8 million pretax loss in the six months to September 30, having reported a GBP13,000 pretax profit in the corresponding period the prior year, even as revenue increased to GBP10.8 million from GBP9.3 million.
Administrative expenses increased by 21% to GBP10.1 million as the number of people employed by the company increased to 319 from 278, while charges for depreciation, amortisation and about trebled to GBP2.3 million.
Lombard Risk Management maintained its interim dividend at 0.035 pence per share.
Executive Chairman Philip Crawford said that he and the rest of the board are "optimistic" about the second half of the year, based on record levels of both contracted orders and recurring revenue streams. The order book of contracted revenue amounted to GBP6.8 million in the half, and said its "strong pipeline" adds to "revenue visibility" from contracted or recurring revenue.
"We recognise the continuing risks to our business of the impact of economic slowdown and the resulting effect on our core client base; however, we believe the continuing emphasis on regulatory change and indeed evolution represents a significant opportunity for the company," Crawford said in a statement.
Shares in the company were down 3.0% at 11.65 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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