Lombard Risk Management slides into first-half loss

22nd Oct 2015 14:09

(ShareCast News) - Lombard Risk Management disappointed investors as it slipped into losses in the half-year to September, despite the financial compliance and reporting software provider increasing revenues 16%.Facing difficulties from the impact of economic slowdown, management has invested to attempt to reposition the business to exploit what it sees as substantial opportunities in both the regulatory and collateral spaces.Even though revenues swelled to £10.8m from £9.3m kn the same perido last year, costs were inflated by some rejigging of the existing product slate and the costs associated with staff changes that included the stepping down of chief executive John Wisbey after 26 years' service.Higher costs plus an impairment charge of £0.7m against the carrying value of two of the company's products, resulted in a loss before tax of £1.8m from last year's tiny profit.With cash at period end of £2.7m, inflated by a £4m equity placing in May, and no debt, the board has proposed an interim dividend of 0.035p per share.Executive chairman Philip Crawford said the board remained optimistic about the second half of the year, based on record levels of both contracted orders and recurring revenue streams."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."