Preliminary Results - Replacement

The headline for the Lombard Risk Management announcement released on 9 May 2011 at 7:00am under RNS No 1519G should read unaudited 'Preliminary Results' rather than Final Results.

The announcement text is unchanged and is reproduced in full below.

9 May 2011

Lombard Risk Management plc

Unaudited preliminary resultsfor the year ended 31 March 2011

Lombard Risk delivers 32% revenue growth

Lombard Risk Management plc ("Lombard Risk" or the "Company"), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce its preliminary results for the year to 31 March 2011.

Financial highlights

§ Good financial results and cash generation:

§ Group revenues increased by 32% to £11.8m (2010: £8.9m)

§ £2.2m swing into profit at pre-tax level

§ Net cash generated from operating activities of £1.2m

§ Improving trading performance throughout 2011:

§ Regulatory Compliance: more than 30 new UK liquidity customers, global expansion

§ Risk Management: significant product enhancements and further Tier 1 interest

§ Revenue growth in both "regulatory compliance" and "risk management" businesses

§ H1 profitability momentum continued through H2

§ Full write-off of development costs in FY2011; however the Company's accounting policy will require capitalisation in the financial year ending 31 March 2012

§ Cash balance of £1.8m (2010: £0.7m) at the year end

§ No debt

Operational highlights

§ All growth was organic

§ Market-leading position

§ Significant interest from Tier 1 and Tier 2 prospects

§ No excessive reliance on any individual customer

§ Additional experience added to Board

§ Management team further strengthened

§ Colline CCP platform released

§ FSA Liquidity projects well executed

§ Move to new London offices completed and fully expensed

John Wisbey, Chief Executive Officer, commented on the results:

"The Company has made great progress in the year and is now well positioned, profitable and cash generative. Despite the substantial improvements during this period, we believe that opportunities exist to advance the business performance further in the coming year. We enter the current financial year with a strong sales pipeline, leading-edge products, a strengthened management team, an appropriately structured cost base and a strong balance sheet.

"The Company has evolved to a profitable position based on a leading product portfolio in a market with an ever greater need to buy regulatory or risk management products. As a result of our disciplined product development strategy and a clear focus on the needs of our customers, our business continues to develop strongly.

"Looking ahead we will continue to expand our core businesses - Regulatory Compliance and Risk Management in the financial services market - by improved product functionality, smarter technology solutions and increased geographic reach. The aim of this strategy is to deliver significant and sustainable turnover and earnings growth over the next five years. It is anticipated that this will lead to a positive return to the Company's investors via both dividend income and capital growth.

"The continued hard work and contribution made by all colleagues has been a contributory factor to the Company's positive results. I would like to thank them all for their continued efforts."

UNAUDITED Consolidated Statement of comprehensive income

For the year ended 31 March 2011

UNAUDITED Consolidated Balance Sheet

As at 31 March 2011

UNAUDITED Consolidated Statement of Changes in Shareholders' Equity

for the year ended 31 March 2011

UNAUDITED Consolidated Cash flow Statement

for the year ended 31 March 2011

Notes

 1. The financial information set out above does not constitute the Company's statutory accounts within the meaning of Section 435 of the Companies Act 2006. The figures for the year ended 31 March 2011 are based on unaudited accounts for the year ended 31 March 2011. The directors anticipate that the auditor's report, to be issued with the Group's statutory accounts for the year ended 31 March 2011, will be unqualified.

The unaudited preliminary announcement has been prepared on the basis of accounting policies set out in the Group's statutory accounts for the year ended 31 March 2010.

The comparatives for the year ended 31 March 2010 are derived from the statutory accounts for the year ended 31 March 2010. These statutory accounts, which contain an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statement under Section 498 of the Companies Act 2006, have been delivered to the registrar of companies in accordance with Section 441 of the Companies Act 2006.

2. The Company will announce its full audited financial statements and accompanying notes later in May 2011 together with a Chairman's statement and detailed report from the CEO.

3. The Company's accounting policy in respect of deferred tax states:

"Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.

Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Statement of comprehensive income, except where they relate to items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity."

In view of the cumulative tax losses of the Company, the improved performance of the Company in the year ended 31 March 2011 and the anticipated sustainability of profitable results against which the tax losses can be offset, the Company has recognised tax assets totalling £721,500 in line with the above accounting policy. The resulting tax credit has been recognised in the Statement of Comprehensive Income.

Annual General Meeting

Lombard Risk will be holding its Annual General Meeting at the Head Office at Ludgate House, 245 Blackfriars Road, London SE1 9UF at 14:00 hours on Wednesday, 13 July 2011.

www.lombardrisk.com

About Lombard Risk Management plc

Lombard Risk enables firms in the financial industry significantly to improve their approach to managing the risk in their businesses.

Our award-winning solutions enable the financial industry to improve the management and reporting of counterparty, collateral, trading and liquidity risk; global regulatory compliance reporting, including Basel III.

Founded in 1989 and headquartered in London, Lombard Risk has offices in New York, Shanghai, Hong Kong and Singapore. Our clients include banking businesses - over 20 of the world's "Top 50" financial institutions, almost half of the banks operating in the UK, as well as investment firms, asset managers, hedge funds, fund administrators and large corporations worldwide.

The Lombard Risk solution suite is developed and supported by an extensive team of risk and financial experts and includes:

COLLINE® - a powerful end-to-end collateral management system designed by collateral management experts. Colline provides the ideal solution for mitigating credit risk while satisfying the growing demand for multiple entity, cross-product, global collateral management. Sophisticated, web-enabled design enables Colline to integrate with existing technology permitting secure access anywhere in the world.

LISA® - scenario analysis and stress testing. Built using state-of-the-art technology with a powerful web-based graphical user interface, LISA® is a solution that can satisfy new liquidity risk management requirements and support growing regulator demands for timely and reliable information.

STB-Reporter - regulatory reporting. The ideal solution for all automated regulatory reporting requirements. With full support for key supervisory computations including capital adequacy (Basel II and III), large exposures, and combined with LISA, provides a comprehensive solution for global regulatory reporting with the stress and scenario testing.

The Lombard Risk software solution suite also includes OBERON® trade capture and valuation, Firmament® credit and equity valuation and STB-Detector® AML and customer due diligence.

Cautionary Statement

This report contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of Lombard Risk Management plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Lombard Risk Management plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.