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Trading Update and Director Loans Lombard
Risk Management plc ('LRM' or the "Company") Lombard Risk Management plc, the second largest global provider of specialised software solutions that improve the management of collateralised trading and regulatory compliance, will announce its annual results for the year ended 31 March 2009 by the end of September 2009. The results are likely to be marginally below market expectations. The Company is optimistic about the prospects for the current financial year, especially the second half. It has a record sales pipeline both for its COLLINE® collateral management software product, and for its regulatory software business in the UK. In particular, the Company expects that the major changes in UK financial regulation around FSA liquidity reporting look set to provide an important revenue opportunity for the Company beginning in the second half of the financial year. Further, a number of contract wins for both COLLINE® and the regulatory software business are expected to be announced shortly. Financing As previously envisaged in a Chairman's Statement the Company will seek to raise additional equity finance. This will be carried out after the summer holiday period. The purpose will be to ensure that the Company is able to execute its strategy aggressively and fund the working capital requirements of the many potential contract wins. Board Change To meet the needs of an increasingly active and growing company, Lombard will seek to appoint a full time Finance Director in the autumn of 2009. Director loans The Company has entered or will enter into arrangements with two directors of the Company whereby those directors will make additional loans or loan facilities to the Company totalling £480,000 (together the "Loans"). Brian Crowe, Non-executive Director, has provided a loan for £200,000 and will provide a further loan facility of £40,000. John Wisbey, Chairman and Chief Executive Officer, will provide a loan facility for £240,000. The Loans are being put in place to provide the Company with additional working capital and equity bridging finance for the July/August holiday period when cashflow can be weak. The Loans, which bear interest at 1% per month on drawn amounts only, are on a demand basis from the point of view of the lenders and are repayable at any time at the Company's option. In the event that the Company raises additional equity or loan funding, the outstanding amount of the Loans may be converted in whole or in part at each lender's option into funding on the same terms as that new funding. No fees are payable. The Board, with the exception of John Wisbey and Brian Crowe, and having consulted with Noble & Company Limited, considers the terms of the Loans to be fair and reasonable, insofar as the Company's shareholders are concerned. Enquires: John Wisbey Noble & Company City Profile |
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