Lombard Risk still feeling the loss
UK-based regtech and risk management vendor Lombard Risk is still reporting losses in its latest full year results.
For the period ended 31 March 2017, pre-tax loss came in at £1.6 million, an improvement on the £2.2 million from the year before.
As reported in May 2016, as a result of its loss for 2015/16 it suspended its final dividend payment. At that time, Alastair Brown, CEO at Lombard Risk, made much of the “major changes” to its leadership team; a new brand and website launched; and its new regulatory reporting solution AgileReporter.
For its latest results, Brown says it has been a “strong year for Lombard Risk where we have comprehensively delivered on the objectives set out in our fund raising of 2016”.
It wasn’t all grim. Recurring revenue increased by 21% to £12.4 million from £10.2 million for the previous year. Revenue from new licences and renewals was up by an impressive 113.7% to £11.6 million from £5.4 million compared to last year.
There was also good news for turnover – standing at £34.3 million, a rise of 44.8% from £23.7 million for the year before. EBITDA was also up, coming in at £2.6 million. Last year it was £2.1 million.
In terms of expenditure on technology, such as R&D, testing, support and product maintenance, this went up to £14.5 million from £9.1 million the year before.
Due to this investment, Lombard Risk says it is aiming to rid the pre-tax loss blues and start making profit.
The company also plans to venture beyond its traditional areas of expertise.
Brown adds: “In three years’ time, I would be surprised if we were to be focused just on regulatory and collateral.”