News blog
Lombard Risk Management
- BY: Andrew Hore |
- POSTED: 29/08/2011 |
Lombard Risk Management’s prospects have been overshadowed by abortive bid talks.
FRSGlobal, a subsidiary of Dutch publisher Wolters Kluwer, was interested in bidding for Lombard but it ended bid talks during July. Lombard had said that it did not believe that FRSGlobal would offer enough for the business.
At the time that the talks were going on, Lombard announced a software deal with Société Générale that will be worth more than £2m in the first two years. The deal is for COLLINE collateral management software and it replaces software developed by the bank. This deal will continue to generate revenues in future years.
The regulatory outlook for the financial sector should mean additional demand for the software that Lombard supplies.
This sparked a profit upgrade by research company Hardman. The profit forecast for the year to March 2012 has been maintained at £1.78m but the 2012-13 figure has been pushed up from £2.6m to £3.7m. At 7.25p, the shares are trading on eight times 2012-13 prospective earnings.
Lombard has a strong balance sheet with £1.78m in the bank at the end of March 2011. A maiden dividend of 0.03p a share is being paid.
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