Lombard Risk Management has just delivered an impressive set of results for the year to March 31 2013, taking it back at the high growth levels it achieved back in the year to March 2011 (and a marked contrast to the single digit growth in the intervening year – see here).
For the year to March 2013, the provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, increased yoy revenue by an impressive 31% (18% organic) to £16.8m. PBT also surged forward with a 56% increase to £3.9m, while EBITDA saw a 77% increase to £5.3m, despite investment in product development and the expansion of the sales team during the year.
The level of growth was achieved despite regulatory delays, plus ongoing issues around the Euro and the general economic malaise. CEO John Wisbey is rightly pleased with the results but says the company would have done even better were it not for the delays. However, one of his other highlights was that the company both grew and was cash generative despite the regulatory delays.
The UK was the best performing region, due to historic high levels of business, but the company still acquired new customers as well as making additional sales to existing clients, a theme that is also apparent in other areas of the business.While some customers delayed investment, Wisbey points out that this is delayed spend not lost spend.
With a wave of regulations due over the coming years, this is mileage for some years according to Wisbey. However, we can envisage peaks and troughs because company performance is linked with regulatory timetables. Lombard Risk Management’s shift to an indirect sales model via a range of partner types is notable - it is working with large ISV’s who will embed its products, and partners who can assist with marketing and execution for example. This will help it scale and sustain growth. Overall, the outlook looks promising.