Lombard blames regulatory delays for H1 revenue fall

Lombard Risk Management swung to a half year loss on lower revenues, thanks in part to delays to new European reporting regulations.

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Lombard blames regulatory delays for H1 revenue fall

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Revenues for the six months were £7.3 million, down five per cent on the same period the previous year. The firm made a pre-tax loss of £0.9 million, compared to a £0.1 million profit in the first half of 2012.

However, the risk management software specialist says that the revenue dip is offset by a record order book of contracted revenue at £5.4 million.

This is the result of delays in the implementation of new European Banking Authority reporting rules, which has left the vendor waiting to finalise its related Corep product.

With 45 clients, including 16 new names, signed to the product, and the related revenues set to roll in soon, Lombard says it expects full year results to be heavily weighted to the second half.

John Wisbey, chief executive, Lombard, says that if there are no more delays to Corep, the firm has already won enough business for the full year's revenues to equal or exceed last year's number of £16.8 million.

"Consequently, any business awarded to us and implemented in the next 5 and a half months will represent revenue growth for the year as a whole. This gives us continued confidence in meeting the full year revenue forecasts in the market," he adds.

Shares in the company were down 1.13 pence, or 8.3%, at 12.38 pence per share in mid-morning trading.

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