Fintech hails Birmingham centre’s contribution to future growth

Alpha Birmingham

Fintech Lombard Risk Management has hailed the opening of its new Birmingham facility as an important step forward in the growth of the business.

The group opened the 7,100 sq ft technology centre in Alpha Tower towards the end of last year. It has ambitions to create 140 new jobs over the next three years.

The group succeeded in raising £7.9m net during the year via a placing and open offer to support its plans for increased investment in its products and the launch of its new Birmingham centre.

In the company’s latest full year results statement, Alastair Brown, CEO of Lombard Risk, said: “This has been a strong year for Lombard Risk where we have comprehensively delivered on the objectives set out in our fund raising of 2016.

“We have reported a step change in revenue growth, opened a world class development facility in Birmingham and are successfully executing projects to extend our product capabilities.”

The company is a leading provider of regulatory reporting and collateral management solutions to the financial services industry.

The results were mixed.

Group revenue increased by 44.8% to a record £34.3m compared with £23.7m in 2015/16. However, this still did not prevent it from recording a £1.6m loss.

Strong growth was seen in the Risk Management and Trading division, which saw revenues increase by 83.1%.

Elsewhere, Regulatory Reporting revenues grew by 10.6% primarily due to growth in recurring revenues and professional services. Licence revenues for new and renewed term licences increased by 113.7% to £11.6m (2016: £5.4m), representing 33.7% of revenues (2016: 22.8%).

Recurring revenues grew 21.0% to £12.4m (2016: £10.2m) and represented approximately 36.0% of revenue (2016: 43.1%). Recurring revenues now have a current annualised run rate in excess of £12.9m.

Operating profit before share-based payment charges, depreciation and amortisation (adjusted EBITDA) was £2.6m (2016: £2.1m).

Nevertheless, the group recorded a pre-tax loss of £1.6m (2016: £2.2m), resulting in a basic loss per share of 0.18p (2016: 0.98p).

Founded in 1989 and headquartered in London, besides Birmingham, it also has offices in New York and Asia Pacific (Hong Kong, Shanghai, Singapore and Tokyo), and service centres in Atlanta, Cape Town and Frankfurt.

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