StockMarketWire.com - Lombard Risk's full year pre-tax profits could be up to a third below market forecasts if it fails to close all the contracts currently under negotiation.
The company - a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry - is currently in the process of negotiating several new contracts.
It says that if all of the contracts close and revenue recognition standards are met, the company expects to achieve market forecasts for the year to the end of March.
But if some of these contracts are delayed, or are lost, or revenue is deferred, it would be likely that the company will fall short of market expectations, possibly by up to 10% in revenue and around a third in pre-tax profit.
Irrespective of the results for the current year, the company is cautiously optimistic of achieving market expectations for the year ending 31 March 2013.
Growth is expected to be driven by mandatory regulatory reporting requirements, for example European Banking Authorit proposed Common Reporting (COREP) rules and requirements of the US Dodd-Frank Act as well as continued expansion of the company's collateral solutions.
At market close: (LON:LRM) Lombard Risk Management share price was -1.75p at 8.88p
Story provided by StockMarketWire.com
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