24th Oct 2005 07:00
Lombard Risk Management PLC24 October 2005 For immediate release24 October 2005 Lombard Risk Management plc ("Lombard Risk" or "the Group") Commercial Update Lombard Risk today provides an update on the Group's position following therecent disposal of the ValuSpread business to Fitch Ratings Ltd and the purchaseby the Group of STB Systems Ltd. These corporate transactions have significantlystrengthened the Group's balance sheet and cash position, while also increasingits prospects for future revenue growth. The Board is pleased to announce that of the maximum consideration of £6.0million payable to the Group from the disposal of ValuSpread, £5.8 million hasalready been paid on or after completion by Fitch, and the board is optimisticthat the balance of £0.2 million will be payable shortly. STB Systems has made a good start during its trading period within the Group.New clients have been gained in the United Kingdom, the USA, New Zealand andSingapore. Current indications are that the company is on track to achieve itsearn-out. The reception to the acquisition from customers and partners of STBSystems has been very favourable and there have been no STB Systems clientlosses since joining the Group. Following receipt of the consideration payable to date from the sale ofValuSpread, the purchase of STB Systems, the settlement of certain liabilitiesassociated with the ValuSpread business, and other costs associated with boththe ValuSpread disposal and the STB Systems purchase, the Group's net cash andmarketable securities position at 30th September 2005 was approximately £3.7million. The Group's businesses are now: i) Lombard Risk Systems, which produces the Oberon and Firmament software products for trading and risk management and the recently re-branded collateral management software product Colline; ii) STB Systems, which produces software products and related consulting for regulatory reporting and anti money laundering; and iii) Independent Valuation and Risk Services ("IVRS") which provides independent valuations of financial instruments and related risk numbers to various financial institutions. The Group is presently looking at acquisition and partnering opportunities whichare complementary to these existing businesses. Furthermore, the Group is alsoactively considering reducing the cost of incremental software developmentthrough the establishment of an offshore development centre in Shanghai, China.The Board believes that Shanghai's re-emergence as a major financial centre alsopresents Lombard Risk with significant local revenue opportunities over comingyears in addition to the cost benefits of offshore development. The results for the six months to 30th September 2005 are expected to beannounced on 21st November 2005, at which time the company will also giveupdated guidance on trading and prospects. Enquiries: Lombard Risk Management plcJohn Wisbey, Chairman & CEOTel: +44 20 7384 5000 www.lombardrisk.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lombard Risk Management