Sale of business unit
Lombard Risk Management plc (the “Group”
or ”Lombard Risk”)
Lombard Risk Management plc, a fast growing company providing
regulatory, risk management and valuation software for the
financial sector, announces the sale of its independent valuation
business.
The Group has sold its wholly owned subsidiary Independent
Valuation and Risk Services Ltd (“IVRS”) to LIFFE (Holdings)
plc, a subsidiary of NYSE Euronext, for a consideration of
approximately £700,000 plus a deferred consideration element
to be calculated based on actual revenues that are achieved
from certain named customers over the next year. IVRS reported
revenues of £266,270 for the year ending 31 March 2007.
In addition Lombard Risk has signed contracts for the supply
of certain software and services, including its Firmament
valuation software, to IVRS. These are expected 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 the appendix of this announcement.
John Wisbey, Chairman and CEO of Lombard Risk commented: “IVRS
is a promising business in a promising area, and we will be
sorry to see the team leave. That said, we took a strategic
decision to sell the business as the investment required to
make IVRS a great success would have been large in relation
to our size and would have required a considerable change
of business direction away from our software roots. We have
decided instead to refocus on our software business which
continues to show very satisfactory revenue growth particularly
in the regulatory and collateral management areas.”
Enquiries:
Lombard Risk Management plc
John
Wisbey
Chairman and CEO
Tel : +44 (0)20 7384 5000
Noble & Company (Nominated Advisors)
Matthew Hall, Director
Tel: +44 20 7763 2200
Click
here to email Lombard Risk's Investor Relations team
Bishopsgate Communications Ltd (Financial PR)
Tel: +44 20 7562 3350
Dominic 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 March 2007:
Value of net liabilities: £1,874,313
Losses attributable to those liabilities:
£1,020,871
Type of consideration: No shares or other
securities form part of the consideration received
Application of proceeds: working capital.
END
