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Lombard Risk today provides an update
on the Group’s position following the recent disposal
of the ValuSpread business to Fitch Ratings Ltd and the purchase
by the Group of STB Systems Ltd. These corporate transactions
have significantly strengthened the Group’s balance
sheet and cash position, while also increasing its prospects
for future revenue growth.
The Board is pleased to announce that of the maximum consideration
of £6.0 million payable to the Group from the disposal
of ValuSpread, £5.8 million has already been paid on
or after completion by Fitch, and the board is optimistic
that the balance of £0.2 million will be payable shortly.
STB Systems has made a good start during its trading period
within the Group. New clients have been gained in the United
Kingdom, the USA, New Zealand and Singapore. Current indications
are that the company is on track to achieve its earn-out.
The reception to the acquisition from customers and partners
of STB Systems has been very favourable and there have been
no STB Systems client losses since joining the Group.
Following receipt of the consideration payable to date from
the sale of ValuSpread, the purchase of STB Systems, the settlement
of certain liabilities associated with the ValuSpread business,
and other costs associated with both the ValuSpread disposal
and the STB Systems purchase, the Group’s net cash and
marketable securities position at 30th September 2005 was
approximately £3.7 million.
The Group’s businesses are now:
Lombard Risk Systems, which
produces the Oberon and Firmament software products
for trading and risk management and the recently
re-branded collateral management software product
Colline;
STB Systems, which produces software products
and related consulting for regulatory reporting
and anti money laundering; and:
Independent Valuation and Risk Services (“IVRS”)
which provides independent valuations of financial
instruments and related risk numbers to various
financial institutions.
The Group is presently looking at acquisition
and partnering opportunities which are complementary to these
existing businesses. Furthermore, the Group is also actively
considering reducing the cost of incremental software development
through the establishment of an offshore development centre
in Shanghai, China. The Board believes that Shanghai’s
re-emergence as a major financial centre also presents Lombard
Risk with significant local revenue opportunities over coming
years in addition to the cost benefits of offshore development.
The results for the six months to 30th September 2005 are
expected to be announced on 21st November 2005, at which time
the company will also give updated guidance on trading and
prospects.
Enquires:
Lombard Risk Management plc:
John Wisbey, Chairman and CEO
Tel : +44 (0)20 7384 5000
STB Systems Ltd
Michael Thomas, CEO
Tel: +44 20 7403 2188
Click here to email Lombard Risk's Investor Relations team
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