18th Feb 2008 07:00
Lombard Risk Management PLC18 February 2008 Lombard Risk Management plc18 February 2008 Lombard Risk Management plc (the "Group" or "Lombard Risk") Sale of business unit Lombard Risk Management plc, a fast growing company providing regulatory, riskmanagement and valuation software for the financial sector, announces the saleof its independent valuation business. The Group has sold its wholly owned subsidiary Independent Valuation and RiskServices Ltd ("IVRS") to LIFFE (Holdings) plc, a subsidiary of NYSE Euronext,for a consideration of approximately £700,000 plus a deferred considerationelement to be calculated based on actual revenues that are achieved from certainnamed customers over the next year. IVRS reported revenues of £266,270 for theyear ending 31 March 2007. In addition Lombard Risk has signed contracts for the supply of certain softwareand services, including its Firmament valuation software, to IVRS. These areexpected to bring the Group a further £450,000 of revenue over the next 3 years. Additional information in relation to the transaction is disclosed in theappendix of this announcement. John Wisbey, Chairman and CEO of Lombard Risk commented: "IVRS is a promisingbusiness in a promising area, and we will be sorry to see the team leave. Thatsaid, we took a strategic decision to sell the business as the investmentrequired to make IVRS a great success would have been large in relation to oursize and would have required a considerable change of business direction awayfrom our software roots. We have decided instead to refocus on our softwarebusiness which continues to show very satisfactory revenue growth particularlyin the regulatory and collateral management areas." Enquiries: Lombard Risk Management plc Tel: +44 20 7384 5000John Wisbey, Chairman and CEOemail: [email protected] Noble & Company Limited (Nominated Advisors) Tel: +44 20 7763 2200Matthew Hall, Director Bishopsgate Communications Ltd (Financial PR) Tel: +44 20 7562 3350Dominic Barretto / Jenni Herbert Appendix: Information to be disclosed pursuant to Rule 12 of the AIM Rules for Companies: Name of company being sold: Independent Valuation and Risk Services Ltd;Description of the business: independent valuations business The following is based upon the filed accounts for the year ending 31 March2007: Value of net liabilities: £1,874,313Losses attributable to those liabilities: £1,020,871 Type of consideration: No shares or other securities form part of theconsideration receivedApplication of proceeds: working capital. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lombard Risk Management