Trading Statement for the 12 months to 31st March 2005

Lombard Risk Management Plc
15th April 2005

Lombard Risk Management plc (“the Group” or “LRM”) provides the following trading statement ahead of its final results for the 12 months ended 31st March 2005.

Trading Statement

Lombard Risk Management plc, the provider of risk systems and independent valuation services, is providing the following trading statement ahead of its final results for the 12 months ended 31st March 2005, which will be announced at the beginning of June 2005.

Revenue for the 12 months to 31st March 2005, although ahead of revenue in the previous year, has been somewhat lower than market expectations, and consequently this has affected profitability for the second half of the year. Although the Company has continued to see consistent demand for its products and services, several large transactions that were expected to close prior to the end of the trading year had not yet closed by the year end. In addition, software rental and data revenues being at a higher level, and licence sales being at a lower level than expected impacted the sales mix. However, recurrent revenue was at a higher level than expected.

Costs have been affected by the addition of several new members of staff to the sales team. There is a growing sales pipeline owing to the team’s efforts, but it has taken longer than expected for the new team to reach full productivity.

The company also believes that, as a result of trading and corporate activity, it may be able to make use of some of its tax losses in the next financial period, and has consequently for the first year in four years not applied to surrender any of its tax losses against payment for R&D tax credits.

John Wisbey, Chairman and Chief Executive of Lombard Risk, commented: "Timing is always a factor with large transactions and the subsequent impact on year end numbers. However, we are pleased with the level of recurrent revenues, and we remain confident in the level of market demand in our focus areas of credit derivatives and hedge fund management, and in the growth story of the Company over the next few years."

The Company will announce its final results for the 12 months ended 31st March 2005 at the beginning of June 2005.

For further information please contact::

John Wisbey
Chairman and CEO
Tel : +44 (0)20 7384 5000

Click here to email Lombard Risk's Investor Relations team