Since making significant changes to the board in April 2010 as a spur to improve growth and profitability Lombard Risk has made good progress and ended fiscal 2011 with revenue up, and back in the black, albeit modestly with a pre-tax profit of £0.6m (see Revenue up 32% at Lombard Risk). Its challenge is to keep the momentum going which is why this deal is strategically important. It is not just the size and global nature that marks it, but Société Générale’s position as a tier one bank within Europe who will use the suite to manage its collateral worldwide. It is also the first tier one client to select Lombard Risk’s new MIS Reporting module. Lombard Risk says two of the most active trading banks in Europe are using the COLLINE.
When one tier one institution choses a particular solution, it increases the odds of others following suit. Lombard Risk is clearly hoping these deals will ease open other doors, something that is needed because although its financials demonstrate an improving trend it still needs to build the business and raise revenue and profit lines.