John Wisbey, CEO of Lombard Risk commented on the results: âThe 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.
âThe 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.
âLooking 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 Companyâs investors via both dividend income and capital growth.
âThe continued hard work and contribution made by all colleagues has been a contributory factor to the Companyâs positive results. I would like to thank them all for their continued effortsâ.
â¢ Good financial results and cash generation:
â¢ Group revenues increased by 32% to Â£11.8m (2010: Â£8.9m)
â¢ Â£2.2m swing into profit at pre-tax level
â¢ Net cash generated from operating activities of Â£1.2m
â¢ Improving trading performance throughout 2011:
â¢ Regulatory Compliance: more than 30 new UK liquidity customers, global expansion
â¢ Risk Management: significant product enhancements and further Tier 1 interest
â¢ Revenue growth in both âregulatory complianceâ and ârisk managementâ businesses
â¢ H1 profitability momentum continued through H2
â¢ Full write-off of development costs in FY2011; however the Companyâs accounting policy will require capitalisation in the financial year ending 31 March 2012
â¢ Cash balance of Â£1.8m (2010: Â£0.7m) at the year end
â¢ No debt
â¢ All growth was organic
â¢ Market-leading position
â¢ Significant interest from Tier 1 and Tier 2 prospects
â¢ No excessive reliance on any individual customer
â¢ Additional experience added to Board
â¢ Management team further strengthened
â¢ COLLINE CCP platform released
â¢ FSA Liquidity projects well executed
â¢ Move to new London offices completed and fully expensed