Lombard risk management pLc
7th Floor Ludgate House 
245 Blackfriars Road 
London SE1 9UF 
UK 
tel: +44 (0)20 7593 6700 
fax: +44 (0)20 7593 6780 
e: investorrelations@lombardrisk.com
www.lombardrisk.com
Lombard r isk 
management pLc
annual report and 
accounts 2010
MANAGING COLLATERALISED TRADING 
ENABLING REGULATORY COMPLIANCE
Lombard risk management pLc annual report and accounts 2010
_1LRM_ar10_cover for indexpdf.indd   1 10/09/2010   13:14:44 comp any information
company registration number
3224870
directors
phiLip crawford 
Chairman
John wisbey
Chief Executive Officer
nick davies
Chief Technology Officer 
ian peacock 
Deputy Chairman
brian crowe
Non-Executive Director
mike shinya
Non-Executive Director
company secretary
Lisa t an
registered office
7th Floor Ludgate House 
245 Blackfriars Road 
London 
SE1 9UF
nominated advisor and broker
aLLenby c apitaL
Claridge House  
32 Davies Street, Mayfair 
London 
W1K 4ND
auditors
grant thornton uk LLp Grant Thornton House 
Melton Street 
Euston Square 
London 
NW1 2EP
corporate soLicitors
memery crystaL
44 Southampton Buildings 
London 
WC2A 1AP
registrars
computershare investor 
services pLc
PO Box 859 
The Pavilions 
Bridgwater Road 
Bristol 
BS99 1XZ
bankers
nationaL westminster bank pLc
180 Brompton Road 
London 
SW3 1HL
hsbc bank
28 Borough High Street 
London 
SE1 1YB
dates
annuaL generaL meeting 
30 September 2010
The mission at Lombard Risk has always been 
to help the financial industry to improve the 
approach to managing the operational risk 
in their businesses. That mission remains 
unchanged today as Lombard Risk continues 
to deliver innovative specialised software 
solutions that help our customers improve 
the management and reporting of collateralised 
trading, liquidity and regulatory compliance.
For over 20 years Lombard Risk Management plc 
(“Lombard Risk”) has delivered industry-leading 
global risk management and regulatory 
compliance software. Today, Lombard Risk is 
one of the world’s recognised leading providers 
of collateral management and regulatory 
compliance solutions to financial organisations 
and large corporations around the world. 
Our award-winning global solutions enable 
the financial industry to improve the management 
of counterparty risk, collateral risk, trading risk, 
liquidity risk reporting, financial crime detection 
and global regulatory reporting, together with 
excellent MIS reporting.
corporate 
st atement
_1LRM_ar10_cover for indexpdf.indd   2 10/09/2010   13:14:45 01 Lombard Risk Management plc Annual Report and Accounts 2010
HigHligHts
 Highlights
Financial results for the year ended 31 March 2010 prepared under 
International Financial Reporting Standards (“IFRS”) as adopted by 
the European Union.
 Revenue 3% up on same period last year at £8.95m (2009: £8.69m).
  Profitability achieved by Risk and Trading division, with both COLLINE
®
 
Collateral Management software and Oberon
®
 achieving profitability. 
  More contract wins for COLLINE
®
 and acceptance of the software 
by a Tier 1 Continental European bank.
  Multiple contract wins from UK regulatory business driven by Liquidity 
Standards regulation announced by Financial Services Authority (“FSA”) 
in October 2009 with most of the revenue from these to be earned in 
year ending 31 March 2011.
  Loss before interest and tax £1.3m before one off charge relating 
to prior year bad debts (2009: £1.1m).
  Fund-raising completed in October 2009 resulting in strengthened 
Balance Sheet. Cash at year end £0.70m and no debt of any kind 
(2009: £0.15m cash and Director loans of £1.33m).
 Future prospects
  Strong start to trading in new financial year with over 30% like for 
like revenue growth and profitability achieved in both the Company’s 
divisions in the first four months of year ending 31 March 2011.
  Risk and Trading division – ongoing demand for COLLINE
®
: COLLINE
®
 
Collateral Management software has gone live at a high profile Tier 1 
Continental European bank thus proving the product’s ability to 
deal with high volume international banks as well as medium sized 
and smaller clients. In addition demand continues from banks and asset 
managers for collateral management products.
  Regulatory Compliance division: Revenue from Liquidity Standards 
regulations that come into effect by November 2010 proving to 
be very positive for the Company’s Regulatory Compliance division. 
The Company can expect to continue to benefit from further changes 
away from “light touch” regulation.
  Expected revenues from other new products in 2011.
2010 2009 2008 2007 2006
Revenue (£m)
8.95
8.69
8.46
6.94
4.70
£8.95m
+3%
 01 HigHligHts 02 CHaiRman’s statement
 03 CHief exe Cutive OffiCeR’s statement
 08 BOaRd Of diReCtORs 09 l OmBaRd RisK’s management team
 10 diReCtORs’ RepORt 12 CORpOR ate gO veRnanCe RepORt 13 RepORt Of tHe a udit COmmittee 14  RepORt Of tHe independent a uditOR  
– COnsOlidated finanCial statements
 15  COnsOlidated statement Of 
COmpReHensive inCOme
 16 COnsOlidated BalanCe sHeet 17  COnsOlidated statement Of CHanges 
in sHaReHOldeRs’ equity 18 COnsOlidated Cas H fl Ow statement
 19  nOtes tO tHe COnsOlidated 
finanCial statements
 32  RepORt Of tHe independent a uditOR  
– p aRent COmpany finanCial statements
 33 COmpany BalanCe sHeet 34  nOtes tO tHe COmpany finanCial statements
 iBC COmpany infORmatiOn _0_LRM_ar10_front.indd   1 10/09/2010   13:15:47 02 Lombard Risk Management plc Annual Report and Accounts 2010
CHaiRman’s 
statement
I joined Lombard Risk as Chairman 
on 1 May 2010 with the result 
that my own direct experience 
of the Company covers only the 
current financial year. The year to 
date has been a period in which 
the company has been able to 
reap the benefit of the efforts and 
investment made in the previous 
financial year. This has resulted in 
revenue growth of more than 30% 
in the first four months of the 
current financial year, and a return 
to profitability during that time. 
The board and executive team are 
focused on continued operational 
improvements and efficiency to 
accompany the revenue growth 
being achieved. Costs have 
been cut but have also been 
accompanied by investment 
in those areas which we believe 
will drive future growth.
I will report in greater detail 
at the time of the interim 
financial statements but my first 
impressions are of a company 
with considerable potential. I am 
grateful to the Board, investors 
and advisors alike for making me 
feel welcome at Lombard Risk.
pHilip CR awfORd CHaiRman
profitable start to 
new financial year...
_0_LRM_ar10_front.indd   2 10/09/2010   13:15:53 03 Lombard Risk Management plc Annual Report and Accounts 2010
summaRy The year saw the Company 
making steady progress. While 
we incurred a loss for the year 
ended 31 March 2010, the board 
believe that the work done in the 
year has laid the foundation for 
growth in future periods. This 
has subsequently been seen in 
the first few months of the year 
ending 31 March 2011, during 
which we have registered year 
on year growth of over 30% 
per annum. In the collateral 
management software business 
we continued to win contracts 
and grow organically, while 
implementation at the major Tier 1 
Continental European bank 
announced in April 2009 
progressed through the year 
and resulted in acceptance in 
April 2010. In the regulatory 
compliance business a lot of 
work was performed ahead 
of the major new UK Financial 
Services Authority (“FSA”) 
regulations on Liquidity 
Standards, which have provided 
a major revenue opportunity; 
however since these regulations 
were finalised later than expected, 
in October 2009, and software 
was not ready until April 2010, 
the revenue recognised in the 
year ending 31 March 2010 
was negligible. During the year 
we raised equity funds that 
eliminated all our borrowings 
and strengthened our balance 
sheet. In the post-financial crisis 
environment in which customers 
and investors are more risk averse 
than usual, these were all events 
that took us in the right direction.
Revenues for the year increased 
by 3% to £8.95m (2009: £8.69m). 
Our loss after tax was £1.58m 
(2009: £1.16m) but this included 
£0.11m of interest and, following 
a thorough review of revenue, one 
time provision in respect of bad debts 
from previous periods of £0.18m.
We invested heavily in resource 
for COLLINE
®
 during the year, 
although much of that investment 
was to support a major contract 
and other large contracts. The 
Risk and Trading business traded 
profitably, so that more than 
100% of the loss was in the 
Regulatory Compliance business 
which represented 47% of 
revenues. The weakness in the 
regulatory business in the first 
half was expected as few final 
decisions were being taken by UK 
regulatory customers before the 
FSA had finalised its policy on 
liquidity, and the weakness in the 
second half was primarily an issue 
of revenue recognition owing to 
the extended regulatory deadlines. 
An appreciable number of 
contracts were won during 
the second half, but the revenue 
will be recognised in the year 
ending 31 March 2011.
In the post-crisis international 
financial environment, there is 
a move away from a light touch 
regulatory regime in the UK and 
in many other countries, and there 
is little if any sign of this changing 
following the change of UK 
Government. In the UK this 
began with a complete reform 
of Liquidity Reporting and the 
board believes that this move away 
from light touch regulation offers
...continued 
growth
CHief 
exe Cutive 
Offi Ce R’s 
statement
_0_LRM_ar10_front.indd   3 10/09/2010   13:15:59 04 Lombard Risk Management plc Annual Report and Accounts 2010
summaRy COntinued considerable opportunity to the 
Company in the coming years. 
As well as the Liquidity Standards 
announced by the FSA, new FSA 
policy statements on Stress Testing 
have been published and FSA 
consultation papers have been 
published about Capital Standards 
which are likely to lead to more 
regulatory change in 2011 and 
2012. There are considerable 
regulatory opportunities in all the 
countries in which the Company 
operates, with world regulators 
seemingly close to an agreement 
on a “Basel 3” capital regime.
The Board considers that the 
outlook for our COLLINE
®
 collateral 
management software remains 
promising with strong new 
business demand expected 
to continue, including switching 
away from competitor systems 
to COLLINE
®
 together with likely 
revenue growth from existing 
customers. The Company has now 
proved the scalability and resilience 
of the product (i.e. its ability to 
cope with large volumes and to 
withstand the loss of individual 
servers without ceasing to 
function) through its deployment 
in a leading Tier 1 Continental 
European bank operating in 
an international environment. 
Given that most of our revenues 
come from banks and financial 
services companies, the Board 
considers that the Company’s 
products are well placed with an 
emphasis on collateral management, 
liquidity and regulatory compliance. 
We are the global number 2 in 
both collateral management 
software and in bank regulatory 
reporting software.
finanCial Revenues for the year increased 
by 3% to £8.95m (2009: £8.69m). 
Our loss after tax was £1.58m 
(2009: £1.16m) but this included 
£0.11m of interest and a one-time 
provision in respect of bad debts 
from previous periods of £0.18m 
following a thorough review. 
Stripping out these items would 
have shown a reduced underlying 
loss of £1.3m and an adjusted cost 
base of £10.2m for the year. Net 
cash was £0.7m at 31 March 2010 
(2009: £0.15m less £1.33m of 
director loans).
promising  
outlook...
CHief 
exe Cutive 
Offi Ce R’s 
statement
COntinued
_0_LRM_ar10_front.indd   4 10/09/2010   13:15:59 05 Lombard Risk Management plc Annual Report and Accounts 2010
tR ading and RisK 
sOftwaRe pROduCts 
As anticipated in former statements, 
the financial crisis has been 
beneficial for our COLLINE
®
 
collateral management software 
product. This product now 
handles substantially all of the 
key requirements of a collateral 
business including margining, 
repo and securities lending, 
trade reconciliation, inventory 
management and reporting 
including regulatory reporting 
(e.g. for Fed-15 reports and 
outputs to regulatory liquidity 
reporting). During the year we 
completed projects with Loomis, 
Sayles & Co, Pacific Life, ABN-
AMRO and began a project with 
BNP Paribas Securities Services. 
We also made good progress 
with implementation of a major 
contract with a Tier 1 Continental 
European bank concluded at the 
end of the financial year ended 
31 March 2009, and have 
demonstrated COLLINE
®
’s 
scalability, resilience and 
performance in that bank’s own 
environment using active-active 
clustering in multiple data centres, 
user locations in three continents 
and well over 150 users. This 
means that the Board has every 
confidence that our solution is 
scalable from the smallest collateral 
user to the largest global bank. 
Oberon
®
, our most established 
product, continues to move 
forward with functional and 
performance enhancements 
and remains profitable. 
During the year we launched our 
LISA
®
 product and we have now 
signed up several new customers 
for it. LISA
®
 will be a risk product 
which is complementary to our 
regulatory products, starting with 
Liquidity Risk and using the most 
modern technology. Lombard Risk 
has always been strong on risk 
management and the Board 
considers that the convergence 
of risk and regulation plays 
to our strengths.
RegulatORy and COmplianCe 
sOftwaRe pROduCts Lombard Risk is the market leader 
for UK Bank regulatory reporting 
with approximately 130 of 
the 350 banks in the UK and 
approximately 15 investment firms 
in the UK using the STB-Reporter 
product for regulatory reporting 
to the FSA. 
This depth of customer base clearly 
gives the Company opportunities 
to sell additional functionality 
to existing customers. When the 
announcement of new regulations 
is imminent there tends to be a lull 
in activity before those regulations 
are actually finalised and this was 
the case during the year with the 
FSA ’s final new regulations on 
Liquidity Reporting and Liquidity 
Stress Testing not being published 
until October 2009. Consequently 
there was very little revenue in the 
period under review from this 
source except from analysis work 
on the impact of the consultation 
papers. The Company has now won 
The financial highlight of the 
period was the raising of £2.83m 
of equity, of which £1.75m was 
from institutions and investors on 
AIM, and the balance of £1.08m 
was in either new money or loan 
conversions from Directors and 
former Directors. After deduction 
of fees and expenses of around 
£0.2m, this allowed the Company 
to repay all its Director loans of 
£1.63m and its overdraft, reduce 
its creditors to a lower number 
of creditor days, as well as retain 
a reserve for working capital.
Recurrent revenue has historically 
been a healthy proportion of 
revenues at the Company. Recurrent 
annual revenues for the Group were 
at around £4.4m p.a at the year 
end (2009: £4.3m). In addition, 
the revenue profile remains fairly 
well spread. This recurrent number 
has continued to grow during the 
current financial period and as 
a result of contracts already won, 
the Board expects this to grow 
throughout the remainder of the 
current period.
...major tier 1  
bank accepts colline
®
_0_LRM_ar10_front.indd   5 10/09/2010   13:16:00 06 Lombard Risk Management plc Annual Report and Accounts 2010
strengthened 
governance...
CHief 
exe Cutive 
Offi Ce R’s 
statement
COntinued
RegulatORy and COmplianCe 
sOftwaRe pROduCts COntinued 30 contracts related to this initiative 
for Liquidity Reporting or Liquidity 
Stress Testing, and is very busy 
rolling out the solution to these 
customers in the current financial 
year. The FSA has also ended up 
changing its originally stated plans 
to subject all foreign bank branches 
to UK Liquidity Reporting, and many 
such firms were able to negotiate 
modifications/waivers to these rules. 
The Liquidity Reporting and Stress 
Testing regulatory regime which 
comes into effect in the UK in 
2010 seems likely to be followed 
in 2011 by new Capital Standards 
and Stress Testing and there is a 
timetable for regulatory change 
including a new “Basel 3” accord. 
This opportunity is by no means 
confined to the UK, although the 
Board believes that the weight of 
our customer base gives us more 
ability to leverage the opportunity 
in the UK than elsewhere.
The Board considers that the 
Company’s ability to offer global 
solutions has been greatly enhanced 
through our now having regulatory 
offerings available or under 
production for several EMEA 
and Asian countries as well as 
the United States. Our Singapore 
office made a number of worthwhile 
product wins including business 
in Singapore, won away from our 
main competitor, and we obtained 
our first two customers for 
Japanese reporting. 
peRsOnnel and pRemises
During the period under review 
we continued to make new hires 
appropriate to the expected 
growth of parts of the business 
but we also benefited from cost 
actions taken before the financial 
year end. We continue to take 
actions designed to establish 
profitability in all parts of the 
business and to re-allocate 
resources to those parts of the 
business where we see the best 
prospects. The Board intends that 
costs will continue to be contained 
overall and that they are reduced 
as a percentage of any revenue 
rises as proportionately more work 
is carried out in Shanghai and 
we achieve greater efficiency gains. 
We now have more than half of 
our Group headcount in Shanghai.
I agreed to split my combined 
Chairman and Chief Executive 
Officer role at the time of the 
institutional fund-raising, and 
the Board and I were delighted 
to welcome Philip Crawford as 
our  new Non-executive Chairman 
from 1 May 2010. At the same 
time Mike Shinya joined as a 
Non-executive Director. Both Philip 
and Mike have very heavyweight 
experience as senior executives in 
the IT industry at large companies 
such as EDS and Oracle and their 
experience will help take the 
Company forward to the next level. 
While so many people worked 
hard during the year, special 
thanks are due to the teams 
in London and Shanghai led by 
Nick Davies and Helen Bramley 
who did so much to ensure the 
success of major Colline projects. 
Many late nights were worked 
by many to ensure that 
deadlines were met. 
At Board level special thanks 
are due to Ian Peacock, our 
Non-executive Deputy Chairman, 
who retires at the AGM. Ian has 
been with the Company for over 
ten years in various capacities 
and I have always valued his wise 
counsel and incisive questioning 
over that time. Thanks are also 
due to Chris Langridge who 
joined us in April as COO and 
Finance Director to help us 
with some of our strategic 
initiatives including cost cutting. 
Chris will not be standing for 
re-election at the AGM and 
a permanent replacement 
will be announced shortly.
_0_LRM_ar10_front.indd   6 10/09/2010   13:16:00 07 Lombard Risk Management plc Annual Report and Accounts 2010
...30 contracts won for  
liquidity reporting
software, should be well positioned 
to take advantage of this. 
I would like to thank all my 
colleagues, as well as our advisors 
Allenby Capital, Grant Thornton 
UK LLP , Memery Crystal and 
others, for their hard work and 
support and further to thank 
our customers and investors 
alike for their support of us.
JOHn wisBey CHief exeCutive OffiCeR
pROspeCts The Group has seen more than 
30% year on year revenue growth 
in the first four months of the 
current financial year, and taking 
into account recurrent revenue 
and the contracted revenues which 
the Board believes should be 
recognisable by 31 March 2011, 
this is a promising start to the new 
financial year. We continue to see 
a healthy sales pipeline for our 
COLLINE
®
 collateral management 
software following the substantial 
Tier 1 Continental European bank 
going live. In addition, the Board 
believes that some of the new 
regulatory driven industry initiatives 
on central counterparty and 
messaging should help us win 
additional business. In addition 
the Board foresees no end to the 
increase in bank and securities 
firm regulation, and is optimistic 
that this will have a positive 
effect on the Group’s regulatory 
compliance business, albeit that 
this benefit will continue to come 
in waves with peaks and troughs 
in demand around regulatory 
deadlines. The climate for the 
next few years is for mandatory 
additional spend on regulation. 
The key issue for us is what share 
of this spend the Group can achieve 
and the scale of investment required 
to make this a major international 
profit opportunity for us, rather 
than whether that opportunity exists. 
In this changing environment the 
Board continues to believe that, 
as changes in legislation are 
adopted and credit risk and 
liquidity risk management are ever 
more tightly controlled, risk and 
regulatory software will be in 
demand. Lombard Risk, as 
the global number 2 in both 
collateral management software 
and bank regulatory reporting 
_0_LRM_ar10_front.indd   7 10/09/2010   13:16:01 08 Lombard Risk Management plc Annual Report and Accounts 2010
pHilip CR awfORd 
CHaiRman
Philip Crawford joined the Board 
of Lombard Risk in 2010. He has 
been working in the IT Industry 
since 1983. Philip has held a number 
of senior positions in software, 
hardware and services companies 
including senior vice president 
of Oracle Corporation with 
membership of the executive 
board and Larry Ellison’s Strategy 
Council, President of EDS 
International with responsibility 
for all markets outside the US, 
chief executive of Bull UK and 
executive vice president and head 
of EMEA for i2 Technologies. 
Since retiring from full time 
employment in 2002, Philip has 
concentrated on his non-executive 
director portfolio and acts as a 
‘business angel’. He is currently 
the chairman of a small number 
of companies including Avanti 
Capital Plc and Crimsonwing Plc.
JOHn wisBey CHief exeCutive OffiCeR
John Wisbey is the Chief Executive 
Officer of Lombard Risk, which he 
has led since its launch in 1989 
with the introduction of Oberon, 
one of the industry’s original 
software systems for financial 
instrument valuation and risk 
management. John has guided the 
Company’s organic growth through 
the creation and development 
of several successful products, 
initially Oberon, followed by 
ValuSpread a credit derivative data 
service (sold to Fitch in 2005), 
Colline for collateral management 
and most recently LISA for liquidity 
risk management. In addition, 
John has been the principal 
architect of the Company’s inorganic 
growth, which includes the 
acquisitions of Open Image 
Systems in 1994 (later floated on 
AIM as IDOX plc in 2000) and STB 
Systems (now the core of Lombard 
Risk’s regulatory compliance 
business) in 2005. Today, under 
John’s leadership, Lombard Risk 
is an international leader in 
collateralised trading, liquidity 
management and regulatory 
compliance offering a wide range 
of products and services to 
multi-national clients. 
Prior to establishing Lombard Risk, 
John was head of option trading 
and a director in the Swap Group 
at Kleinwort Benson Limited. 
John acquired a broad foundation 
in the world’s financial markets 
and developed specialisations in 
derivatives and banking technology 
during his twelve years in the 
Treasury Division and Banking 
Division at Kleinwort Benson while 
based in London, Hong Kong and 
Singapore. John was also past 
chairman until 2005 of IDOX plc, 
a former subsidiary of Lombard 
Risk and now a leading company 
in UK e-government. 
niCK davies CHief teCHnOl Ogy OffiCeR 
Nick Davies joined the Board 
of Lombard Risk in 2010 having 
joined the firm in 2008 as the 
Group’s CTO. As CTO, Nick has 
global responsibility for Lombard 
Risk’s technical vision as well as 
for the delivery and quality of all 
software products. At Lombard Risk 
Nick’s achievements include 
providing the architectural vision 
for the rearchitecture of the Colline 
collateral management platform 
to provide additional business 
resilience and processing capacity 
capabilities. These architecture 
and design principles contributed 
to Colline winning its first Tier-1 
enterprise client in early 2009. 
At JP Morgan he was the head 
of technology for three global 
businesses: Globeclear, Collateral 
Management and Global Trust. 
He oversaw the technical integration 
of the Hedge Fund acquisitions 
into the Alternative Investment 
group and was responsible 
for several high profile merger 
projects. He was responsible 
for the technical teams that 
architected and implemented the 
JP Morgan CommanD product 
servicing OTC Derivatives. 
ian peaCOCK
deputy CHaiRman
Ian Peacock joined the Board of 
Lombard Risk in 2000. He is also 
the chairman of Mothercare plc, a 
director of the UK bank C.Hoare & Co 
(founded in 1672), and chairman 
of the Family Mosaic Housing 
Association. Ian Peacock previously 
held a number of other senior 
positions including serving on 
the Barclays Bank Group Credit 
Committee, and the group board 
of Kleinwort Benson Group plc as 
well as chairman of the Kleinwort 
Benson Credit Committee. He was 
also chairman of Galiform plc 
from 2000–2006, a special 
advisor to the Bank of England 
from 1998–2000, and was a 
non-executive director of Norwich 
and Peterborough Building Society 
until 2005. On 30 April 2010 
it was announced that Ian would 
be retiring from the Board before 
the end of 2010.
BRian CROwe nOn-exeCutive diReCtOR
Brian Crowe joined the Board 
of Lombard Risk in 2004 at the 
time of its IPO on AIM. He was the 
chief executive of Global Banking 
& Markets at the Royal Bank 
of Scotland plc (“RBS”) until 
October 2008. During his tenure 
at RBS, Brian was a member 
of the Group ALCO, Credit and 
Investment Committees of RBS 
and a member of the Group 
Executive Management Committee. 
He was chairman of the Wholesale 
Committee of the British Bankers 
Association from 2006 to 2008, 
and was a member of the Global 
Banking Issues Committee of the 
European Banking Federation (or 
Fédération Bancaire Européenne) 
from 2005 to 2008. He was also 
a member of the City of London 
EU Strategy Group for 2007/8. 
Prior to joining RBS, he was head 
of derivatives at Chase Manhattan 
Bank in London. He is a former board 
member of the International Swaps 
and Derivatives Association (“ISDA ”).
miKe sHinya nOn-exeCutive diReCtOR 
Mike Shinya joined the Board 
of Lombard Risk in 2010. Until 
June 2010 Mike Shinya was the 
Chief Executive Officer of IBS Group, 
a Stockholm headquartered 
Business Applications Software 
company operating in over 20 
countries globally. Prior to this 
position Mike was chief executive 
officer at Sherwood International 
and chief operating officer at 
Micro Focus plc (both publicly 
quoted UK software companies). 
Mike has been in the IT industry 
for over 30 years having served 
in senior positions at IBM, Oracle 
and Baan Company.
BOa Rd Of 
diReCtORs The Group is run by its Board of Directors, 
which currently has six members including 
four Non-executive Directors and meets 
regularly. The Non-executive Directors make 
a valuable contribution by bringing a breadth 
of business and relevant professional 
experience to the Board. The Board has 
overall responsibility for the Group and 
there is a formal schedule of matters 
specifically reserved for decision by the 
Board. It is responsible for the overall 
Group strategy, acquisition and 
divestment policy, approval of major 
capital expenditure and consideration 
of significant capital matters.
tOp ROw fROm left tO RigHt: i an p ea COCK, mi Ke sH inya, n i CK d avies 
BOttOm ROw fROm left tO RigHt: pHilip CR awfORd, JOHn wisBey , BRian CROwe
_0_LRM_ar10_front.indd   8 10/09/2010   13:16:08 09 Lombard Risk Management plc Annual Report and Accounts 2010
l OmBa Rd Ris K’s 
management team
Lombard Risk’s management team has been constructed from experts 
in their respective fields. Many have banking backgrounds and have 
used risk management and regulatory software in previous roles, 
giving them first hand knowledge of customer needs and desires.
These individuals’ skills and experience have been brought together 
to create a team that now has the ability to respond to and anticipate 
customer requirements. This gives considerable market advantage 
when competing for business and delivering to plan.
_0_LRM_ar10_front.indd   9 10/09/2010   13:16:12 10 Lombard Risk Management plc Annual Report and Accounts 2010
Directors’ report 
For the year enDeD 31 March 2010
The Directors submit their annual report together with the consolidated financial statements for the year ended 31 March 2010.
Directors’ responsibilities
The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared consolidated 
financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union and Parent Company 
financial statements in accordance with UK Generally Accepted Accounting Practice (“UK GAAP”). The financial statements are required by law 
to give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing 
these financial statements, the Directors are required to:
  select suitable accounting policies and then apply them consistently;
  make judgements and estimates that are reasonable and prudent;
  state whether applicable IFRS and UK GAAP have been followed, subject to any material departures disclosed and explained in the financial 
statements; and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position 
of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for 
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as each of the Directors is aware:
  there is no relevant audit information of which the Company’s auditor is unaware; and
  the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish 
that the auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
principal activities anD business review
The Company is a holding company. The principal activities of the Group are the provision of trading, valuation and risk management systems 
and regulatory compliance systems to the financial markets. A review of these activities, future developments and financial risk management 
is provided in the Chairman’s statement and note 14 to the consolidated financial statements. This information forms a part of the Directors’ report.
Key perForMance inDicators
The Directors have monitored the performance of the Group with particular reference to the following key performance indicators:
  turnover by product line compared to prior year;
  cash management – actual compared to budget; and
  operating costs by location compared to prior periods.
results anD DiviDenDs
The audited financial statements for the year ended 31 March 2010 are set out on pages 15 to 31. The Group’s loss for the year after taxation 
amounted to £1,584,351 (2009: loss £1,098,937). The Directors do not propose a dividend for the year (2009: £Nil).
Directors anD their interests
The Directors who served during the year and their beneficial interests in the Company’s ordinary share capital were as follows:
     31 March 2010 31 March 2009 
     number Number
John Wisbey
1
    101,639,562 81,889,562
Ian Peacock    1,588,532 1,088,532
Brian Crowe    5,625,000 625,000
Keith Butcher (resigned 27 April 2010)    1,250,000 Nil
Michael Thomas (resigned 1 July 2009)    5,558,360 4,958,360
1
 77,939,562 shares are owned directly. In addition John Wisbey is a beneficiary of Advanced Technology Trust which owns a further 23,700,000 shares.
In addition to these shareholdings listed above, the Directors have been granted options over ordinary shares.
In accordance with the Articles of Association, John Wisbey and Brian Crowe are due to retire at the forthcoming Annual General Meeting 
(“AGM”) and, being eligible, will offer themselves for re-election.
Subsequent to the balance sheet date, the following were appointed as Directors:
  Nicholas Davies, 27 April 2010
  Chris Langridge, 27 April 2010
  Philip Crawford, 1 May 2010
  Mike Shinya, 1 May 2010
_0_LRM_ar10_back.indd   1 10/09/2010   13:15:10 11 Lombard Risk Management plc Annual Report and Accounts 2010
charitable anD political Donations
The Group made no charitable donations in the year (2009: £Nil) and no political donations (2009: £Nil).
payMent oF creDitors
It is the Group’s practice to agree credit terms with all suppliers and to pay all approved invoices within these agreed terms. The average trade 
creditor days for the year was 49 days (2009: 75 days).
substantial shareholDings
As at 31 March 2010 the Company was aware of the following interests in 3% or more of its issued share capital:
     Number of shares % holding
John Wisbey    101,639,562 49.11
Legal & General Group plc    17,280,000 8.35
AMF (NBF) Holdings Inc.    12,222,222 5.90
Gartmore Investment Limited    10,650,000 5.14
Merifin Capital NV    7,525,264 3.63
research anD DevelopMent
Research and development expenditure incurred on the Group’s suite of products has all been expensed to the income statement in the relevant period.
going concern
The financial statements have, as in previous years, been prepared on a going concern basis. The Directors have formally considered this 
issue in the light of the operating losses in the current and earlier years, and the consequent operating cash outflows during these periods.
In forming an opinion that the Company and the Group is a going concern, the Directors have taken particular note of the positive trading 
performance in the year to date, both in the signing of new business contracts, and in the realised financial results. These show an up-turn in 
the Group’s performance and, in particular, a backlog of contracted revenue which gives a clear view of revenues through the next three quarters. 
The level of this revenue is such that the Group is not reliant on substantial forecasted new business to generate sufficient funds for its operations.
The Directors have prepared the cashflow forecasts for the periods ending 31 March 2011 and 31 March 2012 which show that the 
Company and Group have sufficient facilities for ongoing operations. Whilst there will always remain some inherent uncertainty within the 
aforementioned forecasts, the Directors believe the Company and Group have sufficient resources to continue in operational existence for 
at least twelve months from the date of approval of these financial statements.
Accordingly the Directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2010.
auDitor
A resolution to re-appoint Grant Thornton UK LLP as auditor and to authorise the Directors to agree their remuneration will be placed before 
the forthcoming AGM of the Company.
On behalf of the Board
John wisbey
Director
registereD oFFice
7th Floor  
l uDgate house 
245 blacKFriars roaD 
l onDon se1 9uF
7 septeMber 2010
_0_LRM_ar10_back.indd   2 10/09/2010   13:15:10 12 Lombard Risk Management plc Annual Report and Accounts 2010
corporate governance report 
For the year enDeD 31 March 2010
policy stateMent
The Board is committed to high standards of integrity and corporate governance, consistently seeking to apply the principles set out in the 
Combined Code (“the Code”) although recognising that as an AIM company the Company is not required to comply with the provisions 
of the Code and, largely because of its size, does not comply with a number of them. This statement, together with the Directors’ report and 
the report of the Board to shareholders on Directors’ remuneration, explains how the Group has applied the principles set out in the Code.
internal controls
The Directors are responsible for the systems of internal control. Although no system of internal control can provide absolute assurance against 
material misstatement or loss, the Group’s systems are designed to provide the Directors with reasonable assurance that problems are identified 
on a timely basis and dealt with appropriately. The Board considers that there have been no substantial weaknesses in internal financial controls 
resulting in any material losses, contingencies or uncertainties, and thus disclosable in the accounts. The Board has considered the need for an 
internal audit function and has concluded that there is no current need for such a function within the Company.
accounting policies
The Board considers the appropriateness of its accounting policies on an annual basis. The Board believes that its accounting policies and 
estimation techniques are appropriate in particular in relation to income recognition, research and development and deferred expenses.
boarD oF Directors
The Board, comprising a Non-executive Chairman, two Executive Directors and three Non-executive Directors, is responsible for the overall 
strategy and direction of Lombard Risk Management plc as well as for approving potential acquisitions, major capital expenditure items and 
financing matters. The Board has a formal schedule of business reserved to it and meets regularly during the year. Advice from independent 
sources is available if required. The Board monitors exposure to key business risks, reviews the strategic direction of the Company, the annual 
budgets and progress against those budgets.
The Board members and their roles are described on page 8. The Executive Directors have service contracts, which are terminable upon periods 
between three and twelve months’ notice. In accordance with the Company’s Articles of Association, one third of the Directors are required to 
retire by rotation at the AGM.
shareholDer relations
The Company recognises the importance of dialogue with all of its shareholders. The AGM is an opportunity to communicate with institutional and 
other shareholders. Additional information is supplied through the circulation of the interim report and the Annual Report and Accounts. Lombard 
Risk Management plc maintains up to date information on the investor section of its website www.lombardrisk.com.
Every shareholder receives a full Annual Report after each year end and has access to an Interim Report online after each half year end. Care is 
taken to ensure that any price sensitive information is released to all its shareholders, institutional and private, at the same time in accordance 
with London Stock Exchange requirements.
auDit coMMittee
The Audit Committee is a committee of the Board chaired by Ian Peacock and also comprises Brian Crowe and Philip Crawford. The Report 
of the Audit Committee can be found on page 13.
reMuneration coMMittee
The Remuneration Committee is chaired by Mike Shinya and also comprises Brian Crowe, Philip Crawford and John Wisbey. The committee 
reviews the remuneration structures and performance of the Executive Directors and reviews the remuneration policy for senior management. 
The Remuneration Committee meets as and when necessary and has access to professional advice from inside and outside the Company. 
The Executive Directors determine the remuneration arrangements of the Non-executive Directors. No Director may participate in decisions 
regarding his own remuneration.
_0_LRM_ar10_back.indd   3 10/09/2010   13:15:11 13 Lombard Risk Management plc Annual Report and Accounts 2010
report oF the a uDit coMMittee 
For the year enDeD 31 March 2010
MeMbership anD Meetings oF the a uDit coMMittee
The Audit Committee is a committee of the Board and is composed entirely of Non-executive Directors, whom the Board considers to be 
independent. The Audit Committee invites the Executive Directors and other senior managers to attend its meetings as appropriate.
During the year the Audit Committee was chaired by Ian Peacock. John Wisbey remained a committee member. The Audit Committee is 
considered to have sufficient, recent and relevant financial experience to discharge its functions. The Audit Committee invites others, including 
the external auditor, to attend its meetings as appropriate.
role, responsibilities anD terMs oF reFerence
The Audit Committee’s role is to assist the Board in the effective discharge of its responsibilities for financial reporting and internal control.
The Audit Committee’s responsibilities include:
  reviewing the integrity of the annual and interim financial statements of the Group ensuring they comply with legal requirements, 
accounting standards and the AIM rules and any other formal announcements relating to the Group’s financial performance;
  reviewing the Group’s internal financial control and risk management systems;
 monitoring and reviewing the requirement for an internal audit function; and
  overseeing the relationship with the external auditor, including approval of their remuneration, reviewing the scope of the audit 
engagement, assessing their independence, monitoring the provision of non-audit services, and considering their reports on the Group’s 
financial statements.
inDepenDence oF external auDitor
The Audit Committee keeps under review the relationship with the external auditor including:
  the independence and objectivity of the external auditor, taking into account the relevant UK professional and regulatory requirements and 
the relationship with the auditor as a whole, including the provision of non-audit services;
  recommending to the Board and shareholders the re-appointment or otherwise of the external auditor for the following financial period; and
  the consideration of audit fees and any fees for non-audit services.
The Audit Committee develops and recommends to the Board the Company’s policy in relation to the provision of non-audit services by the 
auditor and ensures that the provision of such services does not impair the external auditor independence.
ian peacocK
chairMan oF the a uDit coMMittee
7 septeMber 2010
 
_0_LRM_ar10_back.indd   4 10/09/2010   13:15:11 14 Lombard Risk Management plc Annual Report and Accounts 2010
report oF the inDepenDent a uDitor
consoliDateD Financial stateMents
inDepenDent auDitor’s report to the MeMbers oF l oMbarD risK ManageMent plc
We have audited the Group financial statements of Lombard Risk Management plc for the year ended 31 March 2010 which comprise the 
Consolidated statement of comprehensive income, the Consolidated balance sheet, the Consolidated statement of changes in shareholders’ 
equity, the Consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation 
is applicable law and International Financial Reporting Standards (“IFRS”) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
respective responsibilities oF Directors anD auDitor
As explained more fully in the Directors’ responsibilities statement set out on page 10, the Directors are responsible for the preparation 
of the Group financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the Group financial 
statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
scope oF the auDit oF the Financial stateMents
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
opinion on Financial stateMents
In our opinion the Group financial statements:
  give a true and fair view of the state of the Group’s affairs as at 31 March 2010 and of its loss for the year then ended; 
  have been properly prepared in accordance with IFRS as adopted by the European Union; and
  have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other Matter prescribeD by the coMpanies act 2006
In our opinion the information given in the Directors’ report for the financial year for which the Group financial statements are prepared 
is consistent with the Group financial statements.
Matters on which we are requireD to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
  certain disclosures of Directors’ remuneration specified by law are not made; or
  we have not received all the information and explanations we require for our audit.
other Matter
We have reported separately on the Parent Company financial statements of Lombard Risk Management PLC for the year ended 31 March 2010.
christopher sMith
senior statutory a uDitor
For anD on behalF oF grant thornton uK llp
statutory a uDitor, chartereD accountants
l onDon
8 septeMber 2010
_0_LRM_ar10_back.indd   5 10/09/2010   13:15:11 15 Lombard Risk Management plc Annual Report and Accounts 2010
consoliDateD stateMent 
oF coMprehensive incoMe 
For the year enDeD 31 March 2010
     year ended Year ended 
     31 March 2010 31 March 2009 
     Note £ £
Continuing operations    
Revenue    2 8,949,459 8,694,450
Cost of sales    (174,139) (43,936)
Gross profit    8,775,320 8,650,514
Administrative expenses    (10,256,513) (9,769,510)
(Loss) from operations   4 (1,481,193) (1,118,996)
Finance expense   5 (108,915) (139,736)
Finance income   6 1,026 5,000
(Loss) before taxation    (1,589,082) (1,253,732)
Taxation   7 4,731 96,074
(Loss) for the year from continuing operations   (1,584,351) (1,157,658)
Profit for the year from discontinued activities   8 — 58,721
(Loss) for the year transferred from reserves   (1,584,351) (1,098,937)
Exchange differences on translating foreign operations   (54,536) 21,072
Total comprehensive income for the year    (1,638,887) (1,077,865)
(Loss) per share    
Basic (pence)   9 (0.95) (0.81)
Diluted (pence)   9 (0.95) (0.81)
(Loss) per share on continuing activities   
Basic (pence)   9 (0.95) (0.85)
Diluted (pence)   9 (0.95) (0.85)
Earnings per share on discontinued activities    
Basic (pence)   9 — 0.04
Diluted (pence)   9 — 0.04
The accompanying accounting policies and notes form an integral part of the financial statements.
_0_LRM_ar10_back.indd   6 10/09/2010   13:15:11 16 Lombard Risk Management plc Annual Report and Accounts 2010
consoliDateD balance sheet  coMpany nuMber: 03224870
as at 31 March 2010
     as at As at 
     31 March 2010 31 March 2009 
    Note £ £
Non‑current assets
Property, plant and equipment   10 151,753 239,798
Goodwill   11 3,632,680 3,632,680
Other intangible assets   11 10,208 11,441
     3,794,641 3,883,919
Current assets   
Trade and other receivables   12 1,579,833 2,842,226
Cash and cash equivalents    702,194 150,999
     2,282,027 2,993,225
Total assets    6,076,668 6,877,144
Current liabilities   
Trade and other payables   13 (1,953,437) (3,847,208)
Provisions   15 — (137,664)
Deferred income    (2,794,698) (2,580,502)
     (4,748,135) (6,565,374)
Total liabilities    (4,748,135) (6,565,374)
Net assets    1,328,533 311,770
Equity   
Share capital   16 1,464,465 1,110,715
Share premium account    4,795,033 2,512,904
Foreign exchange reserves    (63,672) (9,136)
Other reserves    1,668,923 1,649,152
Profit and loss account    (6,536,216) (4,951,865)
Total equity    1,328,533 311,770
The financial statements were approved by the Board on 7 September 2010 and signed on its behalf by:
John wisbey
chieF executive oFFicer
The accompanying accounting policies and notes form an integral part of the financial statements.
_0_LRM_ar10_back.indd   7 10/09/2010   13:15:12 17 Lombard Risk Management plc Annual Report and Accounts 2010
consoli Date D state Ment o F changes 
in shareholDers’ equity
For the year enDeD 31 March 2010
	 	 	 	 	 Share	 F oreign	 	 P rofit	and 
    share  premium exchange other loss total 
    capital account reserves reserves account equity 
    £ £ £ £ £ £
Balance at 1 April 2009   1,110,715 2,512,904 (9,136) 1,649,152 (4,951,865) 311,770
Share-based payment charge    — — — 19,771 — 19,771
Issue of share capital   353,750 2,282,129 — — — 2,635,879
Transactions with owners   353,750 2,282,129 — 19,771 — 2,655,650
Loss for the year   — — — — (1,584,351) (1,584,351)
Other comprehensive income       
Exchange differences on translating foreign operations   — — (54,536) — — (54,536)
Total comprehensive income for the year   — — (54,536) — (1,584,351) (1,638,887)
Balance at 31 March 2010   1,464,465 4,795,033 (63,672) 1,668,923 (6,536,216) 1,328,533
	 	 	 	 	 Share	 F oreign	 	 Profit	and 
    Share  premium exchange Other loss Total 
    capital account reserves reserves account equity 
    £ £ £ £ £ £
Balance at 1 April 2008   1,108,510 2,490,110 (30,208) 1,637,906 (3,852,928) 1,353,390
Share-based payment charge    — — — 11,246 — 11,246
Issue of share capital   2,205 22,794 — — — 24,999
Transactions with owners   2,205 22,794 — 11,246 — 36,245
Loss for the year   — — — — (1,098,937) (1,098,937)
Other comprehensive income       
Exchange differences on translating foreign operations   — — 21,072 — — 21,072
Total comprehensive income for the year   — — 21,072 — (1,098,937) (1,077,865)
Balance at 31 March 2009   1,110,715 2,512,904 (9,136) 1,649,152 (4,951,865) 311,770
Other reserves relate to negative goodwill arising on the acquisition of a subsidiary undertaking prior to 1 April 1997 share-based payment and 
the merger reserve.
The accompanying accounting policies and notes form an integral part of the financial statements.
 
_0_LRM_ar10_back.indd   8 10/09/2010   13:15:12 18 Lombard Risk Management plc Annual Report and Accounts 2010
consoliDateD c ash Flow st ateMent 
For the year enDeD 31 March 2010
     year ended Year ended 
     31 March 2010 31 March 2009 
     £ £
Cash flows from operating activities  
Loss for the period excluding discontinued operations   (1,584,351) (1,157,658)
Tax credit    (4,731) (96,074)
Finance income    (1,026) (5,000)
Finance expense    108,915 139,736
Operating loss     (1,481,193) (1,118,996)
Profit on discontinued activities (note 8)    — (58,721)
  
Adjustments for:  
Depreciation    137,891 157,032
Amortisation    10,960 13,451
Share-based payment charge    19,771 11,246
Provision for onerous lease     — (9,130)
Decrease/(increase) in trade and other receivables   1,262,393 (521,554)
(Decrease)/increase in trade and other payables   (716,340) 683,059
Increase/(decrease) in deferred income    214,196 (109,693)
Cash used in operations    (552,322) (953,306)
Tax credit received    4,731 96,074
Net cash outflow from operating activities   (547,591) (857,232)
Cash flows from investing activities  
Purchase of property, plant and equipment    (88,851) (235,151)
Purchase of intangible fixed assets    (10,353) (20,496)
Proceeds from sale of IVRS (note 8)    — 58,721
Net cash used in investing activities    (99,204) (196,926)
Cash flows from financing activities  
Loans from Directors    300,000 820,000
Repayment of Directors’ loans    (600,000) —
Shares issued, net of issue costs    1,605,879 24,999
Interest received    1,026 5,000
Interest paid    (108,915) (139,736)
Net cash generated by financing activities   1,197,990 710,263
Net increase/(decrease) in cash and cash equivalents   551,195 (343,895)
Cash and cash equivalents at beginning of period   150,999 494,894
Cash and cash equivalents at end of period   702,194 150,999
Note 22 provides details of major non-cash transactions during the year.
The accompanying accounting policies and notes form an integral part of the financial statements.
_0_LRM_ar10_back.indd   9 10/09/2010   13:15:12 19 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
For the year enDeD 31 March 2010
1. accounting policies
(a) basis oF preparation
These consolidated financial statements are for the year ended 31 March 2010. They have been prepared in accordance with International Financial 
Reporting Standards (“IFRS”) and International Financial Reporting Interpretation Committee (“IFRIC”) interpretations as at 31 March 2010, as adopted 
by the European Union. They have been prepared under the historical cost convention.
The preparation of financial statements under IFRS requires the Board to make judgements, estimates and assumptions that affect the application 
of accounting policies, the reported amounts of balance sheet items at the period end and the reported amount of revenue and expense during 
the reporting period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to 
be reasonable under the circumstances, the results of which form the basis of making judgements that are not readily apparent from other sources. 
However, the actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on going basis.
new stanDarDs, aMenDMents anD interpretations
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards have 
been published but are not yet effective and have not been adopted early by the Group.
Management anticipates that all of the pronouncements will be adopted by the Group’s accounting policies for the first period beginning after 
the effective date of the pronouncement. Information on new standards, amendments and interpretations that are expected to be relevant to the 
Group’s financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have 
a material impact on the Group’s financial statements.
  IFRS 9 “Financial Instruments” (effective 1 January 2013) 
IFRS 9 addresses the classification and measurement of financial assets and will replace IAS 39. The Standard is mandatory for accounting 
periods commencing on or after 1 January 2013, subject to adoption by the European Union.
  Annual Improvements 2009 (effective 1 July 2009 and later) 
The IASB has issued Improvements for International Financial Reporting Standards 2009. Most of these amendments become effective 
in annual periods beginning on or after 1 July 2009 or 1 January 2010. The Group has made a preliminary assessment of the proposed 
amendments and does not believe that the effect on the Group’s financial statements will be significant.
(b) changes in accounting policies
The Group has adopted the following new Standards, Interpretations, Revisions and Amendments to IFRS issued by the International Accounting 
Standards Board and adopted by the European Union, which are relevant and effective for the Group’s financial statements for the annual 
period being 1 April 2009:
  IAS 1 (revised) “Presentation of financial statements”
  IFRS 8 “Operating segments” 
IAS 1 (revised) “Presentation of financial statements” requires presentation of a comparative balance sheet at the beginning of the first comparative 
period in some circumstances. Management considers that this is not necessary because the 2008 balance sheet is the same as that previously published.
IFRS 8 “Operating segments” – The standard replaces IAS 14 “Segment Reporting” and requires entities to adopt the ‘’management approach’’ 
to report on their operating segments. The Group’s accounting policy on operating segments is presented below.
(c) basis oF consoliDation
The Group accounts consolidate the financial statements of the Parent Company (Lombard Risk Management plc) and its subsidiary undertakings 
over which it has full control (see note 5 to the Parent Company balance sheet). A description of the principal activities and operations of the 
Group can be found in the Director’s report on pages 10 and 11.
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made up to 31 March 2010. 
The acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired or disposed of in 
the year are included in the Consolidated statement of comprehensive income from the date of acquisition or up to the date of disposal. All of 
the Group’s assets and liabilities existing at the date of acquisition are recorded at their fair values reflecting their condition at that date. Profits 
or losses on intra group transactions are eliminated in full. Goodwill arising on consolidation was written off to reserves prior to 1 April 1999. 
Goodwill arising after this date is capitalised and under IFRS 3 goodwill is not amortised, but an impairment test is performed as appropriate, 
but at least annually. The value of goodwill is to be written down according to the outcome of the impairment test.
(D) segMent reporting 
In identifying its operating segments, management generally follows the Group’s product lines. The Group operates two main product 
segments: Regulatory compliance software and Risk management and trading software. Regulatory compliance software is for regulatory, 
anti-money laundering and compliance systems to financial markets. Risk management and trading software provides trading, valuation and 
risk management systems to the financial markets. Each of these product lines is managed separately as each of these product lines requires 
different technology and other resources as well as marketing approaches. Corporate overheads, assets and liabilities which are not directly 
attributable to either product line are not allocated to segments.
_0_LRM_ar10_back.indd   10 10/09/2010   13:15:13 20 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
1. accounting policies continueD
(e) going concern
The financial statements have, as in previous years, been prepared on a going concern basis. The Directors have formally considered this issue 
in the light of the operating losses in the current and earlier years, and the consequent operating cash outflows during these periods.
In forming an opinion that the Company and the Group is a going concern, the Directors have taken particular note of the positive trading 
performance in the year to date, both in the signing of new business contracts, and in the realised financial results. These show an up-turn in 
the Group’s performance and, in particular, a backlog of contracted revenue which gives a clear view of revenues through the next three quarters. 
The level of this revenue is such that the Group is not reliant on substantial forecasted new business to generate sufficient funds for its operations.
The Directors have prepared cashflow forecasts for the periods ending 31 March 2011 and 31 March 2012 which show that the Company and 
Group have sufficient facilities for ongoing operations. Whilst there will always remain some inherent uncertainty within the aforementioned 
forecasts, the Directors believe the Company and Group have sufficient resources to continue in operational existence for at least twelve months 
from the date of approval of these financial statements.
Accordingly the Directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2010.
(F) revenue
Revenue represents the value of goods sold and services provided during the year, stated net of Value Added Tax. Revenue and loss before tax 
are wholly attributable to the principal activities of the Group.
The recognition of revenue depends on the type of income:
Licence income  For long-term projects which do not include the up front delivery of immediately usable software, revenue 
is recognised on both the consultancy and initial licence elements in line with the estimated percentage 
of completion of the project. That part of licence and maintenance revenue invoiced simultaneously with 
the initial licence but considered to relate to the period when the licence is deemed to be live is deferred 
in its entirety until the live date, following which it is released to profit in equal daily instalments over the 
duration of the relevant licence or maintenance. For other projects which do include the up-front delivery 
of immediately usable software, revenue is recognised in accordance with the invoicing schedule on a percentage 
completion basis. For non-refundable licences revenue is recognised in full on customer acceptance.
Customisation income Recognised once the customisation has taken place.
Maintenance income Recognised evenly over the term of the maintenance contract.
Rental income  Recognised evenly over the term of the rental contract.
Data subscription income  Recognised evenly over the term of the data contract.
Training income Recognised when the relevant courses are run.
(g) property , plant anD equipMent
Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment. No depreciation is charged during the 
period of construction. Leasehold property is included in property, plant and equipment only where it is held under a finance lease.
The cost of computer hardware, fixtures, fittings and equipment, is written down to the residual value and is depreciated in equal annual instalments 
over the estimated useful lives of the assets. The residual values of assets or groups of like assets and their useful lives are reviewed annually.
The estimated useful lives of the assets are as follows: 
Computer hardware two years 
Fixtures, fittings and equipment four years
(h) gooDwill
Goodwill, representing the excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired, 
is capitalised and reviewed annually for impairment. Goodwill is carried at cost less accumulated impairment losses. Negative goodwill is 
recognised immediately after acquisition in the Consolidated statement of comprehensive income.
(i) intangible assets
research anD DevelopMent
Expenditure on research is recognised as an expense in the period in which it is incurred.
Development costs incurred are capitalised when all the following conditions are satisfied:
  completion of the intangible asset is technically feasible so that it will be available for use or sale;
  the Group intends to complete the intangible asset and use or sell it;
  the Group has the ability to use or sell the intangible asset;
  the intangible asset will generate probable future economic benefits. Among other things, this requires that there is a market for the output 
from the intangible asset or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits;
  there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
  the expenditure attributable to the intangible asset during its development can be measured reliably.
Development costs not meeting the criteria for capitalisation are expensed as incurred.
coMputer soF tware
The cost of computer software, net of estimated residual value and impairment, is depreciated in equal annual installments over one to two 
years based on the estimated useful lives of the assets. The residual values of assets or Group of like assets are reviewed annually.
_0_LRM_ar10_back.indd   11 10/09/2010   13:15:13 21 Lombard Risk Management plc Annual Report and Accounts 2010
1. accounting policies continueD
(J) Financial instruMents
Financial assets and liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual provisions of the 
instrument. The Group’s financial instruments comprise cash, trade receivables and trade and other payables. Derivative instruments are not used 
by the Group and the Group does not enter into speculative derivative contracts.
l oans anD receivables
Loans and receivables are initially stated at their fair value plus transaction costs, then subsequently at amortised cost using the effective interest 
method, if applicable, less impairment losses. Provisions against trade receivables are made when there is objective evidence that the Group 
will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the write down is 
determined as the difference between the assets’ carrying amount and the present value of the estimated future cash flows.
c ash anD cash equivalents
The Group manages short-term liquidity through the holding of cash and highly liquid interest bearing deposits. Only deposits that are readily 
convertible into cash, with no penalty of lost interest, are shown as cash or cash equivalent.
traDe payables
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual 
provisions of the instrument. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair value; all transaction 
costs are recognised immediately in the Statement of comprehensive income. All other financial liabilities are recorded initially at fair value, net of 
direct issue costs.
Financial liabilities categorised as at fair value through profit or loss are re measured at each reporting date at fair value, with changes in fair value 
being recognised in the Statement of comprehensive income. All other financial liabilities are recorded at amortised cost using the effective 
interest method, with interest related charges recognised as an expense in finance cost in the Statement of comprehensive income.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged, cancelled or expires. 
Where debt has been converted into equity, the liability is extinguished at no gain no loss. The equity is measured at the carrying value of the 
extinguished debt.
(K) Foreign exchange
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign 
currencies are translated at the rates of exchange ruling at the balance sheet date. Non-monetary items that are measured at historical cost in 
a foreign currency are translated at the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a 
foreign currency are translated using the exchange rates at the date when the fair value was determined.
Any exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which 
they were initially recorded are recognised in the profit or loss in the period in which they arise. Exchange differences on non-monetary items are 
recognised in the statement of changes in shareholders equity to the extent that they relate to a gain or loss on that non-monetary item taken 
to the statement of changes in shareholders equity, otherwise such gains and losses are recognised in the Statement of comprehensive income.
The assets and liabilities in the financial statements of foreign subsidiaries are translated at the rate of exchange ruling at the balance sheet 
date. Income and expenses are translated at the actual rate at the date of transaction. The exchange differences arising from the retranslation 
of the opening net investment in subsidiaries are taken directly to the “Foreign exchange reserve” in equity. On disposal of a foreign operation 
the cumulative translation differences (including, if applicable, gains and losses on related hedges) are transferred to the Statement of 
comprehensive income as part of the gain or loss on disposal.
(l) t axation
Current tax is the tax currently payable based on taxable profit for the year. The tax credit arises from the UK legislation regarding the treatment 
of certain qualifying research and development costs, allowing for the surrender of tax losses attributable to such costs in return for a tax rebate.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference 
between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of 
goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting 
profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary 
differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available 
to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying 
deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated 
at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance 
sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Statement of comprehensive income, except 
where they relate to items that are charged or credited directly to equity (such as the revaluation of land) in which case the related deferred 
tax is also charged or credited directly to equity.
(M) leaseD assets
The Group does not hold any finance leases.
All leases referred to are regarded as operating leases and the payments made under them are charged to the Statement of comprehensive 
income on a straight line basis over the lease term. Lease incentives are spread over the term of the lease.
Where leased buildings are vacated or under utilised a provision is made for the loss of benefit over the remainder of the lease.
_0_LRM_ar10_back.indd   12 10/09/2010   13:15:13 22 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
1. accounting policies continueD
(n) pension costs
The Group operates a number of defined contribution pension schemes. The assets of the schemes are held separately from those of the Group 
in independently administered funds. The amount charged to the income statement represents the contributions payable to the schemes in respect 
of the accounting period.
(o) share options issueD to eMployees
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 April 2006 are recognised in the 
financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees 
are rewarded using share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of 
the instrument granted to the employee. This fair value is appraised at the grant date using a Binomial model, taking into account the terms 
and conditions upon which the options were granted.
All equity settled share-based payments are ultimately recognised as an expense in the Statement of comprehensive income with a corresponding credit 
to “other reserves”.
If vesting periods or other non market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate 
of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options 
expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment 
is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate, 
share premium.
(p) iMpairMent testing oF gooDwill, other intangible assets anD property , plant anD equipMent
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating 
units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those 
cash-generating units that are expected to benefit from synergies of the related business combination and represent the lowest level within the 
Group at which management monitors the related cash flows.
Goodwill, other individual assets or cash-generating units that include goodwill, other intangible assets with an indefinite useful life, and those 
intangible assets not yet available for use are tested for impairment at least annually. All other individual assets or cash-generating units are 
tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. 
The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted 
cash flow evaluation. Impairment losses recognised for cash-generating units, to which goodwill has been allocated, are credited initially to the 
carrying amount of goodwill. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit. With the exception 
of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
(q) Key JuDgeMent in applying the entity’s accounting policies an D gooDwill iMpairMent
The Group’s management makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based 
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a reasonable risk 
of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
recognition oF revenue
Revenue is recognised according to the accounting policies as stated and is dependent upon the type of income. Where contracts include 
different elements of revenue, those elements are recognised in line with those policies, with fair values attributed to each component part.
Judgement is used in the recognition of revenue from long term projects. 
If work is contracted on a fixed cost basis, revenue is recognised in line with an estimation of the percentage of completion of the project. 
This estimation is based upon the views of the consultants implementing the projects as to the proportion of the project completed and this 
is supported by data from a time recording system. There is, however, an element of judgment involved that can impact the recognition of revenue. 
This process and individual project recognition is reviewed regularly to ensure that, whilst still subjective, the reflection of revenue is the best 
approximation possible.
Where projects include the up-front delivery of immediately usable software, the element of non-refundable licence revenue is recognised on receipt 
of the software by the customer, with other revenue being recognised in line with the performance of the contracted services. The unbundling 
of this contract revenue requires management to exercise judgement as to the relative fair values of the component parts of the contract.
gooDwill iMpairMent
An impairment loss is recognised if the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. 
To determine the recoverable amount, management estimates expected future cash flows from each cash-generating unit and determines a suitable 
interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows management 
makes assumptions about future operating results. These assumptions relate to future events and circumstances. The actual results may vary, 
and may cause significant adjustments to the Group’s assets within the next financial year.
In most cases, determining the applicable discount rate involves estimating the appropriate adjustment to market risk and the appropriate 
adjustment to asset-specific risk factors.
_0_LRM_ar10_back.indd   13 10/09/2010   13:15:13 23 Lombard Risk Management plc Annual Report and Accounts 2010
2. business segMentation
Management currently identifies the Group’s two product lines as operating segments as further described in the accounting policies. These operating 
segments are monitored and strategic decisions are made on the basis of segment operating results.
Segment information can be analysed as follows for the reporting periods under review.
     year ended Year ended 
     31 March 2010 31 March 2009 
     £ £
Revenue
Regulatory compliance software    4,201,278 4,840,863
Risk management and trading software    4,748,181 3,853,587
Group unallocated    — —
Total revenue    8,949,459 8,694,450
Depreciation and amortisation  
Regulatory compliance software    (93,893) (107,531)
Risk management and trading software    (54,958) (62,952)
Group unallocated    — —
Total depreciation and amortisation    (148,851) (170,483)
Interest expense     
Regulatory compliance software    — —
Risk management and trading software    — —
Group unallocated    (107,889) (134,736)
Total interest expense    (107,889) (134,736)
Other costs     
Regulatory compliance software    (5,873,633) (6,630,776)
Risk management and trading software    (3,537,500) (2,857,392)
Group unallocated    (865,937) —
Total other costs    (10,277,070) (9,488,168)
Total costs    (10,533,810) (9,793,387)
Profit/(loss)  
Regulatory compliance software    (1,766,248) (1,897,444)
Risk management and trading software    1,155,723 933,243
Group unallocated    (973,826) (134,736)
Total loss    (1,584,351) (1,098,937)
Net assets  
Regulatory compliance software    (2,368,557) (602,309)
Risk management and trading software    3,798,800 2,643,077
Group unallocated    (101,710) (1,728,998)
Net assets    1,328,533 311,770
The two segments operate independently and there is no inter-segment income or expenditure.
The Group’s revenues from customers and its non-current assets are divided into the following geographical areas. 
     year ended Year ended 
     31 March 2010 31 March 2009 
     £ £
Revenue
United Kingdom    3,985,568 4,948,005
Rest of Europe, Middle East and Africa    1,121,372 1,491,944
The Americas    2,738,291 1,586,906
Asia Pacific    1,104,228 667,595
Total revenue    8,949,459 8,694,450
Non‑current assets  
United Kingdom    17,178 44,553
The Americas    14,749 26,560
Asia Pacific    130,034 180,126
Non‑current assets    161,961 251,239
During the year 13% of the Group revenue depended on a single customer in the Risk management and trading software segment (2009: no customer 
account for more than 10% of revenue). 
_0_LRM_ar10_back.indd   14 10/09/2010   13:15:14 24 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
3. Directors anD eMployees
     2010 2009 
Directors    £ £
Emoluments    408,131 431,215
Pension costs    1,890 9,326
     410,021 440,541
Included within the emoluments is £50,000 compensation for loss of office.
No share options were exercised by the highest paid Director. There were no pension contributions made in respect of the highest paid Director. 
During the year one Director accrued benefit under a Company pension scheme (2009: 1).
The Directors of the Company are the key management personnel.
inDiviDual Director’s eMoluMents anD coMpensation
     2010  2009 
     £ £
John Wisbey    220,000 200,000
Ian Peacock    25,000 25,000
Brian Crowe    20,000 20,000
Keith Butcher (include £50,000 compensation for loss of office)   116,686 —
Michael Thomas     26,445 152,881
Dan Kochav     — 16,667
Christopher Wright     — 16,667
Total    408,131 431,215
  At start   At the  Date from  
Share options of the year Price paid Exercise price end of year  which exercisable  Expire dates
John Wisbey 555,555 — 9p 555,555  14/12/2006  14/12/2011
John Wisbey 1,194,445 — 11p 1,194,445  14/12/2006  14/12/2011
Ian Peacock 300,000 — 9p 300,000  14/12/2006  14/12/2011
Brian Crowe 200,000 — 9p 200,000  14/12/2006  14/12/2011
Michael Thomas 555,555 — 9p 555,555  24/04/2008  24/04/2013
Michael Thomas 444,445 — 11p 444,445  24/04/2008  24/04/2013
     2010 2009 
Staff costs including directors    £ £
Wages and salaries    6,355,573 5,804,417
Social security costs    875,819 820,099
Pension costs    129,110 112,357
Share-based payments charge (note 17)    19,771 11,246
Total staff costs    7,380,273 6,748,119
The average monthly number of employees (excluding Directors) during the year was:
     2010 2009 
     number Number
Office and administration    13 12
Operational    156 146
Total     169 158
4. loss FroM operations
The loss from operations before taxation is stated after charging/(crediting):
     2010 2009 
     £ £
Auditor’s remuneration – Company audit fee    25,000 25,000
Fees payable to the Company auditor for other services  
 Subsidiary company audit fees    20,000 52,150
 Tax services    10,500 10,000
 Other services    569 —
Depreciation     137,891 157,032
Amortisation    10,960 13,451
Foreign exchange    34,232 (41,610)
Operating leases – land and buildings    815,334 916,891
Research and development expenditure    1,064,607 1,139,528
Fees payable to the Company’s auditor, Grant Thornton UK LLP , and its associates for non-audit services to the Company itself are not disclosed 
in the individual financial statements of the Company because the Company’s Group financial statements are required by the Companies 
(Disclosure of Auditor Remuneration) Regulations 2005, regulation 5(1) to disclose such fees on a consolidated basis.
_0_LRM_ar10_back.indd   15 10/09/2010   13:15:14 25 Lombard Risk Management plc Annual Report and Accounts 2010
5. Finance expense
     2010 2009 
     £ £
Interest on bank loans and overdrafts     464 1,348
Other interest payable    108,451 138,388
     108,915 139,736
6. Finance incoMe
     2010 2009 
     £ £
Interest on bank deposits    439 1,807
Other interest receivable    587 3,193
     1,026 5,000
7. taxation
The credit for the year is made up as follows:
     2010 2009 
Corporate taxation on the results for the year    £ £
UK     — —
Non UK    (4,731) —
     (4,731) —
Research and development tax credit in respect of prior years   — (96,074)
Taxation (credit) charge for the year    (4,731) (96,074)
The Group has received to date research and development tax credits of £816,082 (2009: £816,082) relating to financial years ended 31 March 2002 
to 2007. As for all companies that have received these credits, the amounts are subject to potential future HM Revenue & Customs clawback. 
During the year ended 31 March 2010 no tax losses (2009: £Nil) were surrendered in exchange for the research and development tax credit.
The tax assessed for the period is the standard rate of corporation tax in the UK of 28% (2009: 28%). The differences are explained as follows:
     2010 2009 
     £ £
(Loss) on ordinary activities before tax    (1,589,082) (1,253,732)
(Loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 28% (2009: 28%) (444,943) (351,045)
Effect of:  
Capital allowances for the period in excess of depreciation   12,358 12,000
Increase in tax losses    420,546 309,092
Expenses not deductible for tax purposes    7,308 29,953
Subtotal    (4,731) —
Relief and refund available in respect of research and development expenditure  — (96,074)
Current tax (credit)/charge for the period    (4,731) (96,074)
The Directors have not recognised the deferred tax asset of £1.8m arising primarily on trading losses carried forward (2009: £1.5m).
8. DiscontinueD operations
Independent Valuation and Risk Services Limited (“IVRS”) was sold by the Group on 14 February 2008. In the year ended 31 March 2009, 
the Group received the full and final settlement of contingent consideration from the disposal, totalling £58,721. This was recognised in the 
Income Statement in the year ended 31 March 2009.
9. loss per share
Basic loss per share has been calculated by dividing the loss after taxation by the weighted average number of ordinary shares in issue during 
each period.
Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all 
dilutive potential ordinary shares. The Group has only one category of dilutive potential ordinary shares; those share options granted under the 
Enterprise Management Incentive Plan. When a loss is incurred, since the conversion of potential ordinary shares to ordinary shares would 
decrease the net loss per share, options are not dilutive and therefore diluted and basic losses per share are the same (see note 17).
l oss per share
     year ended Year ended 
     31 March 2010 31 March 2009
(Loss) for the year and basic and diluted earnings attributable to ordinary shareholders (pound)  (1,584,351) (1,098,937)
Weighted average number of ordinary shares    167,190,485 136,118,768
(Loss) per share (pence)    (0.95) (0.81)
Effect of dilutive share options    — —
Adjusted weighted average number of ordinary shares   167,190,485 136,118,768
Diluted (loss) per share (pence)    (0.95) (0.81)
_0_LRM_ar10_back.indd   16 10/09/2010   13:15:14 26 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
9. loss per share continueD
continuing operations
     year ended Year ended 
     31 March 2010 31 March 2009
(Loss) for the year and basic and diluted earnings attributable to ordinary shareholders (pound)  (1,584,351) (1,157,658)
Weighted average number of ordinary shares    167,190,485 136,118,768
(Loss) per share (pence)    (0.95) (0.85)
Effect of dilutive share options    — —
Adjusted weighted average number of ordinary shares   167,190,485 136,118,768
Diluted (loss) per share (pence)    (0.95) (0.85)
DiscontinueD operations
     year ended Year ended 
     31 March 2010 31 March 2009
Profit for the year and basic and diluted earnings attributable on discontinued operations (pound) — 58,721
Weighted average number of ordinary shares    — 136,118,768
Earnings per share (pence)    — 0.04
Effect of dilutive share options    — —
Adjusted weighted average number of ordinary shares   — 136,118,768
Diluted earnings per share (pence)    — 0.04
10. property , plant anD equipMent
	 	 	 	 Computer	 Fixtures,	fittings	 
    hardware and equipment Total 
Group   £ £ £
Cost   
At 1 April 2008   877,686 547,736 1,425,422
Additions   97,066 138,085 235,151
Foreign exchange effect   41,012 33,093 74,105
At 31 March 2009   1,015,764 718,914 1,734,678
1 April 2009   1,015,764 718,914 1,734,678
Additions   88,851 — 88,851
Foreign exchange effect   (35,653) (7,686) (43,339)
At 31 March 2010   1,068,962 711,228 1,780,190
Depreciation   
At 1 April 2008   797,653 483,774 1,281,427
Charge for the year   88,049 68,983 157,032
Foreign exchange effect   42,238 14,183 56,421
At 31 March 2009   927,940 566,940 1,494,880
At 1 April 2009   927,940 566,940 1,494,880
Charge for the year   78,191 59,700 137,891
Foreign exchange effect   (3,934) (400) (4,334)
At 31 March 2010   1,002,197 626,240 1,628,437
Net book value   
At 31 March 2010   66,765 84,988 151,753
At 31 March 2009   87,824 151,974 239,798
At 31 March 2008   80,033 63,962 143,995
_0_LRM_ar10_back.indd   17 10/09/2010   13:15:15 27 Lombard Risk Management plc Annual Report and Accounts 2010
11. intangible assets
    Goodwill Other intangible assets Total 
Group   £ £ £
Cost   
At 1 April 2008   3,632,680 230,500 3,863,180
Additions   — 20,496 20,496
Foreign exchange effect   — 2,475 2,475
At 31 March 2009   3,632,680 253,471 3,886,151
At 1 April 2009   3,632,680 253,471 3,886,151
Additions   — 10,353 10,353
Foreign exchange effect   — (677) (677)
At 31 March 2010   3,632,680 263,147 3,895,827
Amortisation   
At 1 April 2008   — 226,181 226,181
Provided in the year   — 13,451 13,451
Foreign exchange effect   — 2,398 2,398
At 31 March 2009   — 242,030 242,030
At 1 April 2009   — 242,030 242,030
Provided in the year   — 10,960 10,960
Foreign exchange effect   — (51) (51)
At 31 March 2010   — 252,939 252,939
Net book value   
At 31 March 2010   3,632,680 10,208 3,642,888
At 31 March 2009   3,632,680 11,441 3,644,121
At 31 March 2008   3,632,680 4,319 3,636,999
The goodwill relates solely to the acquisition of the STB Systems Limited, since renamed Lombard Risk Compliance, which was acquired in 2005 
and which constitutes the Group’s regulatory compliance business. An impairment review has therefore been carried out on this cash-generating unit. 
In accordance with IAS 36 “Impairment of Assets” the cash-generating unit has been assessed by comparing its carrying value to its recoverable 
amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal 
discounted cash flow evaluation.
For the year ended 31 March 2010, the goodwill recoverable amount was determined based on value-in-use calculations, which are based 
on detailed ten year discounted forecast cash flows. Cash flows for the regulatory compliance business are based on management forecasts, 
which are approved by the board and reflects management’s expectations of sales growth, operating costs and margin based on past 
experience as well as the current order book. Management has used a ten year period in the cash flow projections as the regulatory compliance 
business experiences a low level of customer turnover and the technology is based on regulations which, whilst subject to periodic amendment, 
are unlikely to be withdrawn.
The calculations substantially rely on an existing order book for the year ended 31 March 2011. For the years 2012 to 2015, 5% is forecast for 
existing recurrent revenue with 0% growth rate used for 2016 to 2020. No annual growth has been taken into account for new business when 
preparing these value-in-use calculations.
Sensitivity to changes in key assumptions: impairment testing is dependent on management’s estimates and judgements, in particular 
in relation to the forecasting of future cash flows and the discount rate applied to the cash flows. Management has concluded that no 
reasonably possible change in the key assumptions would cause the carrying value of goodwill to exceed its recoverable account.
The table below shows the impairment change that would be required if the assumptions in the calculation of the goodwill value in use were changed:
     25% increase in discount rate 25% decrease in growth rate 
     £ £
Goodwill impairment charge    — —
12. traDe anD other receivables
     2010 2009 
     £ £
Trade receivables    846,224 1,827,243
Other receivables    348,916 511,343
Prepayments and accrued income    384,693 503,640
     1,579,833 2,842,226
The amounts are short term and the Directors consider that the carrying amount of these trade and other receivables approximates to their fair value. 
All of the Group’s trade and other receivables have been reviewed for indications of impairment. As at 31 March 2010, trade receivables of 
£846,224 (2009: £1,827,243) were fully recoverable. An impairment provision of £224,467 (2009: £52,914) has been made against the invoices 
of 28 clients (2009: 4 clients). In addition, some of the unimpaired trade receivables are past due as of the reporting date. Trade receivables past 
due but not impaired are as follows:
_0_LRM_ar10_back.indd   18 10/09/2010   13:15:15 28 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
12. traDe anD other receivables continueD
     2010 2009 
     £ £
Not more than three months    213,074 512,411
More than three months but not more than six months   — 235,224
More than six months but less than a year    3,752 85,144
More than one year    — 74,475
     216,826 907,254
All other receivables (non-trade) are not past due.
Movements in Group provisions for impairment of trade receivables, as included in administrative expenses, are as follows:
     2010 2009 
     £ £
Opening balance    52,914 78,746
Provision for receivables impairment    171,553 —
Receivables written off in the year    — (25,832)
Closing balance    224,467 52,914
The Group operates in a global market with income arising in a number of different currencies, principally Sterling, Euros or US Dollars. 
The Group does not hedge potential future income, since the existence, quantum and timing of such income cannot be accurately predicted.
13. traDe anD other payables
     2010 2009 
     £ £
Trade payables    346,394 519,566
Other taxes and social security costs    589,200 859,383
Other payables    1,017,843 1,138,259
Shareholder loans (see note 20)    — 1,330,000
     1,953,437 3,847,208
14. Financial risK ManageMent anD Financial instruMents
The Group’s multi national operations expose it to financial risks that include market risk, credit risk, operational risk and liquidity risk. 
The Directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained 
unchanged from previous years.
MarKet risK
Market risk for the Group encompasses all those market risk factors that impact the value of the Group’s assets and liabilities and the expected 
value in base currency of the Group’s revenues and costs. The main risk factors are currency risk, inflation risk, and interest rate risk. The Group’s 
policies for managing these are as follows:
i) currency risK
The Group is exposed to translational and transactional foreign exchange risk as it operates in various currencies, including US Dollars, the Euro, 
Chinese Yuan, Hong Kong Dollars and Singapore Dollars. Although, through its owns software, the Group has access to sophisticated models 
for the management of foreign exchange risk, there has been no use of foreign exchange derivatives to manage this position on the basis that 
historically the overall effect on the Group’s income statement has not been large enough to warrant this activity. Whilst the Group operates 
in various different currencies, it has low net exposure to any individual currency at the balance sheet date and consequently no sensitivity 
analysis on currency is provided.
ii) inFlation risK
The Group has exposure to the inflationary effect of operating in countries in which it operates, offset by its ability to raise prices in those 
countries in which it sells. The Group’s cost base is mainly exposed to the inflation rates and changes in payroll taxes in the United Kingdom, 
the United States and China. The inflation rate for salaries in specialised parts of the financial sector in a financial centre such as London, New York 
or Shanghai is often different from the relevant country’s overall rate of wage inflation. Most of the Group’s software contracts give the Group 
the ability to raise prices on a formula linked to the inflation rate of the currency of the contract. No specific hedging of inflation risk has been 
carried out.
iii) interest rate risK
Interest rate risk arises primarily on the investment of the Group’s cash balances or on its borrowings and the present value of the Group’s 
receivables. The Group finances its operations through a mixture of retained cash reserves and Director loans at fixed rates. When the Group is 
a net depositor of funds, the Group stands to gain if interest rates rise and to lose if interest rates fall, ignoring any possible positive or negative 
correlation effects with business demand for the firm’s products or inflationary pressures on the firm’s cost base that might arise from changes 
in interest rates. When the Group is a net borrower of funds, the opposite is the case. Although through its own Oberon
®
 software the Group 
has access to sophisticated models for the management of interest rate risk, there has been no use of interest rate derivatives to manage this 
position on the basis that the amounts are not large enough to warrant this activity. The policy of the Group is to monitor exposure to interest 
rate risk and take into account potential movements in interest rates as well as liquidity considerations when selecting methods of financing.
creDit risK
Most of the Group’s business is with banks, asset management firms and other high quality companies, and the Group’s bad debt experience 
over 15 years has been negligible. The Group consequently has not considered taking out credit insurance and is not likely to do so in the 
foreseeable future. Deposits are placed with high quality banks.
Although through its own Firmament
®
 software the Group has access to sophisticated models for the management of credit spreads and credit 
derivatives, there has been no use of credit derivatives to mitigate counterparty risk and no such use is contemplated.
_0_LRM_ar10_back.indd   19 10/09/2010   13:15:15 29 Lombard Risk Management plc Annual Report and Accounts 2010
14. Financial risK ManageMent anD Financial instruMents continueD
The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date, as summarised below: 
     2010 2009 
Classes	of	financial	assets	–	carr ying	amounts	 	 	 	 £ £
Cash and cash equivalents    702,194 150,999
Trade and other receivables     1,195,140 2,338,588
     1,897,334 2,489,587
operational risK
The Group has numerous operational risks, ranging from control over bank accounts to its processes for delivering and supporting software 
to a required level of quality and on a timely basis, and retention and recruitment of key personnel. A key risk, as for any company, is the 
reputation risk that might arise from poor execution, non-delivery or late delivery of a high profile project or breach of client confidentiality 
for sensitive data. Further risks may arise where late delivery of software or untimely delivery of related services causes a client to miss regulatory 
deadlines. A detailed operational risk review is outside the scope of this report, but the Board attaches importance to maintaining appropriate 
internal controls to identify and limit these risks.
liquiDity risK
The Group seeks to manage financial risk by ensuring that sufficient liquidity is available to meet foreseeable needs and by investing cash assets 
safely as well as profitably. At 31 March 2010 the Group financial liabilities were as follows:
     2010 2009 
     £ £
Current liabilities  
Trade and other payables    1,364,237 1,657,825
Categorised as financial liabilities measured at amortised costs   1,364,237 1,657,825
All amounts are short term and payable in 0 to 3 months. 
15. provisions
As at 31 March 2009 the Group had an office provision for space surplus to its needs, which it had been unable to re let because of the current 
economic conditions. The lease on the office space run until September 2009 and the Group made provision for the contracted cost of the 
surplus space up to the date of expiry of the lease. As at 31 March 2010, the surplus office lease had expired and the group released all the 
provision made in the year ended 31 March 2009 in full to the income statement.
      £
Balance at 31 March 2009     137,664
Amount released to income statement      (137,664)
Total provision for future lease costs due within one year    Nil
16. share capital
     2010 2009 
     £ £
Authorised  
714,034,085 ordinary shares of 0.5p each    3,570,170 3,570,170
Allotted, called up and fully paid  
206,926,786 ordinary shares of 0.5p each (2009: 136,176,786)   1,034,634 680,884
429,829,575 deferred shares of 0.1p each    429,831 429,831
     1,464,465 1,110,715
The deferred shares carry no rights to receive dividends or to participate in any profits of the Company. The shareholders are not entitled to 
attend any meetings of the Company or have any rights to participate in any return of capital (except on a winding up). The deferred shares 
are not transferable other than with the consent of all the Directors of the Company.
share issue
During the year the Company issued 70,750,000 0.5p ordinary shares at the then market value of 4p each. The Company recorded this transaction 
as £353,750 issuance of Ordinary Share Capital and recognised £2,476,250 as Share Premium, from which was netted of £194,121 of issue costs. 
Part of the shares issued was to the Company Directors, further details of which are provided in note 20.
17. share options
eMployee share options charge
The fair value is based on a number of assumptions as stated below.
In accordance with the accounting policy stated under note 1(o) on page 22, the volatility of the Company’s shares for the relevant period has 
been estimated at 30%, giving rise to a charge to the income statement for the year ended 31 March 2010 of £19,771, (2009: £11,246), with 
the same amount being credited to reserves. The expected volatility has been based on historical volatility, using market prices of Lombard Risk 
Management plc shares between 4 September 2004 and 31 March 2008.
equity settleD share-baseD payMents
The Company has a share option scheme for all employees. Options are granted to employees based on the discretion of the Directors 
to reward performance. The vesting period is usually five years. The options are settled in equity once exercised. If the options remain 
unexercised after a period of five years from the date of grant, the options expire. Options are forfeited if the employee leaves the Company.
_0_LRM_ar10_back.indd   20 10/09/2010   13:15:15 30 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the consoli Date D Financial state Ments 
continueD
For the year enDeD 31 March 2010
17. share options continueD
equity settleD share-baseD payMents continueD
The fair values of the options were calculated using a numerical binomial model assuming the inputs shown below:
  At start    at end Exercise Exercise Exercise 
   of year Granted Exercised Lapsed  of year  price (p)  date from  date to
2004 EMI Scheme 1,135,000 — — (405,000) 730,000 9.00 March–06 March–11
  2,050,000 — — — 2,050,000 9.00 April–08 April–13
  1,260,000 — — (390,000) 870,000 9.00 Dec–08 Dec–13
  — 3,900,000 — — 3,900,000 6.00 Oct–11 Oct–16
  1,600,000 — — (600,000) 1,000,000 6.00 June–10 June–15
Unapproved Scheme 1,520,555 — — — 1,520,555 9.00 Dec–06 Dec–11
  1,194,445 — — — 1,194,445 11.00 Dec–06 Dec–11
  915,555 — — — 915,555 9.00 April–08 April–13
  444,445 — — — 444,445 11.00 April–08 April–13
  — 100,000 — — 100,000 6.00 Oct–11 Oct–16
  10,120,000 4,000,000 — (1,395,000) 12,725,000 — — —
Grant date   24 April  24 April 24 April 1 December 20 June 19 October 
    2006 2006 2006 2006 2008 2009
Share price at grant   6.75p 6.75p 6.75p 7.75p 6.25p 5p
Exercise price   9p 9p 11p 9p 6p 6p
Contractual life (years)   5 5 5 5 5 5
Staff turnover   50% 50% 50% 50% 50% 50%
Risk free rate   ….............Discount curve used for UK on the day of valuation….............
Expected volatility   30% 30% 30% 30% 30% 30%
Expected dividend yield   — — — — — —
Fair value of option    2.09p 2.09p 1.65p 2.20p 2.55p 1.51p
Details of the number of share options and the weighted average exercise price (“WAEP”) outstanding during the year are as follows:
      2010 number 2010 waep 2009 Number 2009 WAEP
Outstanding at beginning of the year     10,120,000 8.37p 8,965,000 9.18p
Granted during the year     4,000,000 6p 1,600,000 6p
Exercised during the year     — — — —
Forfeited during the year     (1,395,000) 7.7p (445,000) 9.00p
Outstanding at end of the year     12,725,000 8.1p 10,100,000 8.37p
Exercisable at the year end     7,250,000 — 8,520,000 —
The share options outstanding at the end of the year have the following exercise prices:
Expiry date      Exercise price 2010 number 2009 Number
24 April 2013      9p 5,216,110 5,621,110
24 April 2013      11p 1,638,890 1,638,890
1 December 2013      9p 870,000 1,260,000
20 June 2015      6p 1,000,000 1,600,000
19 October 2016      6p 4,000,000 —
        12,725,000 10,120,000
_0_LRM_ar10_back.indd   21 10/09/2010   13:15:15 31 Lombard Risk Management plc Annual Report and Accounts 2010
18. coMMitMents
The Group had commitments under non cancellable operating leases in respect of land and buildings as follows:
     2010 2009 
     £ £
On leases which expire in one year or less    126,234 283,662
On leases which expire in one to five years    904,080 1,716,681
On leases which expire over five years    — —
Total    1,030,314 2,000,343
For the comparative period this includes the lease provision of £137,664 (see note 15). 
19. pensions
A Group company contributes to a defined contribution pension scheme on behalf of a limited number of employees of that subsidiary. 
The assets of the scheme are administered by trustees in a fund independent of the Company. Other defined contribution pension schemes 
to which the Group makes contributions on behalf of employees are of the stakeholder variety, again totally independent of the Company.
20. relateD party transactions
John Wisbey made advances to the Company of £20,000 and £600,000 on 29 June 2007 and 31 August 2007 respectively. This loan was 
subject to review on 31 October 2007 and repayable by 29 February 2008. On 18 February 2008, £150,000 was repaid to John Wisbey, 
leaving a balance outstanding of £470,000 at the end of the financial year to March 2008. In 2008 John Wisbey made further advances of 
£200,000 and £420,000 respectively in July and August 2008. The balance outstanding to him at the end of the financial year to March 2009 
was therefore £1,090,000. In August 2009 John Wisbey made another advance of £100,000. The total balance outstanding to him of £1,190,000 
was settled in October 2009 partially (£790,000) by conversion of 0.5p ordinary shares at 4p per share as the same time and price as the 
institutional placing and partially (£400,000) by cash payment. The loan carried interest at 1% per month during the outstanding periods.
Ian Peacock advanced an amount of £10,000 to the Company on the 12 July 2007. Michael Thomas advanced a sum of £30,000 on the 
29 June 2007. The loan was interest free until 31 March 2008 and thereafter the loan attracted interest of 1% per month. Both Ian Peacock 
and Michael Thomas loans were settled in October 2009 by conversion of the full outstanding balance to 0.5p ordinary shares at 4p per share. 
Both loans carried interest at 1% per month before settlement.
In June 2008 Brian Crowe advanced £200,000 to the Company. In July 2009 Brian Crowe made further advance of £200,000. The total 
balance £400,000 was settled in October 2009 half by conversion to 0.5p ordinary share and half by cash payment. The loan carried interest 
at 1% per month while outstanding.
There are no outstanding Directors’ Loans at the end of the financial year.
21. controlling relateD parties
In the opinion of the Directors, there is no ultimate controlling party at 31 March 2010.
22. cash Flow stateMent – MaJor non-cash transactions
As disclosed under Note 20 above, the Company settled director loans totalling £1.03m during the year through conversion of the debt to equity. 
_0_LRM_ar10_back.indd   22 10/09/2010   13:15:16 32 Lombard Risk Management plc Annual Report and Accounts 2010
report oF the inDepenDent a uDitor
parent coMpany Financial stateMents
inDepenDent auDitor’s report to the MeMbers oF l oMbarD risK ManageMent plc
We have audited the parent company financial statements of Lombard Risk Management PLC for the year ended 31 March 2010 which 
comprise the parent company balance sheet, and the related notes. The financial reporting framework that has been applied in their 
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 
company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
respective responsibilities oF Directors anD auDitors
As explained more fully in the Directors’ Responsibilities Statement set out on page 10, the directors are responsible for the preparation of 
the parent company financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the parent 
company financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
scope oF the auDit oF the Financial stateMents
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
opinion on Financial stateMents
In our opinion the parent company financial statements:
  give a true and fair view of the state of the company’s affairs as at 31 March 2010; 
  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  have been prepared in accordance with the requirements of the Companies Act 2006.
opinion on other Matter prescribeD by the coMpanies act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent 
with the parent company financial statements.
Matters on which we are requireD to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 
branches not visited by us; or
  the parent company financial statements are not in agreement with the accounting records and returns; or
  certain disclosures of directors’ remuneration specified by law are not made; or
  we have not received all the information and explanations we require for our audit.
other Matter
We have reported separately on the group financial statements of Lombard Risk Management PLC for the year ended 31 March 2010. 
christopher sMith
senior statutory a uDitor
For anD on behalF oF grant thornton uK llp
statutory a uDitor, chartereD accountants
l onDon 
8 septeMber 2010
_0_LRM_ar10_back.indd   23 10/09/2010   13:15:16 33 Lombard Risk Management plc Annual Report and Accounts 2010
coMp any balance sheet  coMpany nuMber: 03224870
as at 31 March 2010
     as at As at 
     31 March 2010 31 March 2009 
    Note £ £
Fixed assets   
Tangible assets   4 11,610 30,022
Investments in subsidiaries   5 12,383,529 12,383,529
     12,395,139 12,413,551
Current assets   
Debtors due within one year   6 4,876,159 6,137,683
Cash at bank and in hand    339 658
     4,876,498 6,138,341
Creditors: amounts falling due within one year  7 (10,896,275) (13,455,058)
Net current liabilities    (6,019,777) (7,316,717)
Total assets less current liabilities    6,375,362 5,096,834
Net assets    6,375,362 5,096,834
Capital and reserves   
Called up share capital   8 1,464,465 1,110,715
Share premium   9 4,795,033 2,512,904
Other reserves   9 7,178,728 7,158,957
Profit and loss account   9 (7,062,864) (5,685,742)
Shareholders’ funds    6,375,362 5,096,834
The financial statements were approved by the Board on 7 September 2010 and signed on its behalf by:
John wisbey
chieF executive oFFicer
The accompanying accounting policies and notes form an integral part of these accounts.
_0_LRM_ar10_back.indd   24 10/09/2010   13:15:17 34 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the coMp any Financial st ateMents
For the year enDeD 31 March 2010
1. accounting policies
(a) basis oF preparation
The separate financial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the separate 
financial statements have been prepared in accordance with all applicable United Kingdom accounting standards and on a historical cost basis.
(b) going concern
The financial statements have, as in previous years, been prepared on a going concern basis. The Directors have formally considered this issue 
in the light of the operating losses in the current and earlier years, and the consequent operating cash outflows during these periods.
In forming an opinion that the Company and Group is a going concern, the Directors have taken particular note of the positive trading 
performance in the year to date, both in the signing of new business contracts, and in the realised financial results. These show an up-turn in 
the Group’s performance and, in particular, a backlog of contracted revenue which gives a clear view of revenues through the next three quarters. 
The level of this revenue is such that the Group is not reliant on substantial forecasted new business to generate sufficient funds for its operations.
The Directors have prepared cashflow forecasts for the periods ending 31 March 2011 and 31 March 2012 which show that the Company and 
Group have sufficient facilities for ongoing operations. Whilst there will always remain some inherent uncertainty within the aforementioned 
forecasts, the Directors believe the Company and Group have sufficient resources to continue in operational existence for at least twelve months 
from the date of approval of these financial statements.
Accordingly the Directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2010.
(c) Foreign exchange
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in 
foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.
(D) DeFerreD taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions 
or events that result in an obligation to pay more or a right to pay less, tax in the future have occurred at the balance sheet date. Deferred tax 
assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been 
enacted or substantively enacted by the balance sheet date.
(e) leaseD assets
All leases held by the Company are regarded as operating leases and the payments made under them are charged to the profit and loss account 
on a straight line basis over the lease term.
(F) FixeD anD intangible assets
Depreciation is provided using the following rates and bases so as to write off the cost or valuation of fixed and intangible assets over their 
useful lives in the Company’s business:
Computer software 50% to 100% straight line
Computer hardware 50% straight line
Fixtures, fittings and equipment 25% straight line
(g) investMents in subsiDiaries
Investments in subsidiaries are recorded at cost less any provision for permanent diminution in value.
2. Directors anD eMployees
     2010 2009 
Staff costs including Directors    £ £
Wages and salaries    731,368 713,701
Social security costs    85,877 96,293
Pension costs    354 2,153
Share-based payments charge (note 17 to the Consolidated financial statements)  19,771 11,246
Total staff costs    837,370 823,393
The average monthly number of employees (excluding Directors) during the year was:
     2010 2009 
     number Number
Office and administration    12 10
Operational    — —
     12 10
3. loss For the Financial year
The Parent Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own income statement in these 
financial statements. The Parent Company’s loss for the year was £1,377,122 (2009: loss £1,734,801).
_0_LRM_ar10_back.indd   25 10/09/2010   13:15:17 35 Lombard Risk Management plc Annual Report and Accounts 2010
4. FixeD assets
	 	 	 Computer	 Fixtures,	fittings	 Other	intangible	 
   hardware and equipment assets Total 
company  £ £ £ £
Cost     
At 1 April 2009  685,813 412,321 232,575 1,330,709
Additions  11,408 — — 11,408
At 31 March 2010  697,221 412,321 232,575 1,342,117
Depreciation     
At 1 April 2009  662,287 407,497 230,903 1,300,687
Charge for the year  23,324 4,824 1,672 29,820
At 31 March 2010  685,611 412,321 232,575 1,330,507
Net book value    
At 31 March 2010  11,610 Nil Nil 11,610
At 31 March 2009  23,526 4,824 1,672 30,022
5. investMents in subsiDiaries
     2010 2009 
investments in subsidiaries    £ £
Opening balance at 1 April    12,383,529 11,911,164
New capital investment in Lombard Risk International Limited    — 472,365
Closing balance at 31 March    12,383,529 12,383,529
The Directors have considered the carrying value of the investments in subsidiaries and have concluded, on the basis of forecast financial 
performance of the subsidiaries, that no impairment in value has taken place and therefore that no provision is currently required.
At 31 March 2010 the undertakings in which the Company held more than 20% of the allotted share capital were as follows:
  Proportion of   
  ordinary share capital held 
Country of
   By parent (%) By Group (%) incorporation Business
Lombard Risk Systems Limited  100 100 UK Software
Lombard Risk Compliance Limited  100 100 UK Software
Lombard Risk International Limited  100 100 China Software
Lombard Risk Systems Inc.  — 100 USA Software
Lombard Risk International (USA) Inc.  — 100 USA Software
Lombard Risk International (Hong Kong) Limited — 100 Hong Kong Software
Lombard Risk International (Singapore) Limited  — 100 Singapore Software
Lombard Risk Consultants Limited  100 100 UK Training
Lombard Risk Systems (Pty) Limited  — 100 South Africa Dormant
Lombard Risk Systems (Asia Pacific) Limited  — 100 Hong Kong Dormant
Swapval Limited  100 100 UK Dormant
All of the subsidiary undertakings have been included in the consolidation.
6. Debtors Due within one year
     2010 2009 
     £ £
Amounts receivable from subsidiary undertakings   4,691,960 6,032,812
Prepayments and accrued income    104,859 104,871
Other debtors    79,340 —
     4,876,159 6,137,683
The amounts due from subsidiary companies are due on demand. However, in the opinion of the Directors, it is unlikely that these amounts will 
be fully repaid within the next financial year.
7. creDitors Due within one year
     2010 2009 
     £ £
Trade creditors    204,796 239,819
Other taxes and social security costs    — 7,920
Amounts due to subsidiary undertakings    10,541,810 11,404,636
Accruals    149,669 335,019
Lease provision    — 137,664
Shareholder loans (see note 10)    — 1,330,000
     10,896,275 13,455,058
_0_LRM_ar10_back.indd   26 10/09/2010   13:15:17 36 Lombard Risk Management plc Annual Report and Accounts 2010
notes to the coMpany Financial state Ments  
continueD
For the year enDeD 31 March 2010
8. share capital
     2010 2009 
     £ £
Authorised  
714,034,085 ordinary shares of 0.5p each    3,570,170 3,570,170
Allotted, called up and fully paid  
206,926,786 ordinary shares of 0.5p each (2009: 136,176,786)   1,034,634 680,884
429,829,575 deferred shares of 0.1p each    429,831 429,831
     1,464,465 1,110,715
The deferred shares carry no rights to receive dividends or to participate in any profits of the Company. The shareholders are not entitled to 
attend any meetings of the Company or have any rights to participate in any return of capital (except on a winding up). The deferred shares 
are not transferable other than with the consent of all the Directors of the Company.
share issue
During the year the Company issued 70,750,000 0.5p ordinary shares at the then market value of 4p each. The Company recorded this transaction 
as £353,750 issuance of Ordinary Share Capital and recognised £2,282,129 as Share Premium, which was net of £194,121 of issue costs. Part of 
the shares issued was to the company directors, further details of which are provided in note 20 to the Consolidated financial statements.
share options
  At start    at end Exercise Exercise Exercise 
  of year Granted Exercised Lapsed  of year  price (p)  date from  date to
2004 EMI Scheme 1,135,000 — — (405,000) 730,000 9.00 March–06 March–11
  2,050,000 — — — 2,050,000 9.00 April–08 April–13
  1,260,000 — — (390,000) 870,000 9.00 Dec–08 Dec–13
  1,600,000 — — (600,000) 1,000,000 6p June–10 June–15
  — 3,900,000 — — 3,900,000 6p October–11 October–16
Unapproved Scheme 1,520,555 — — — 1,520,555 9.00 Dec–06 Dec–11
  1,194,445 — — — 1,194,445 11.00 Dec–06 Dec–11
  915,555 — — — 915,555 9.00 April–08 April–13
  444,445 — — — 444,445 11.00 April–08 April–13
  — 100,000 — — 100,000 6.00 October–11 October–16
  10,120,000 4,000,000 — (1,395,000) 12,725,000 — — —
9. share preMiuM anD other reserves
	 	 	 Share	premium	 Other	 Profit	and	 Shareholders’ 
  Share capital account reserves loss account funds 
  £ £ £ £ £
Balance at 1 April 2009 1,110,715 2,512,904 7,158,957 (5,685,742) 5,096,834
Loss for the year — — — (1,377,122) (1,377,122)
70,750,000 new shares issued at 0.5p  353,750 2,282,129 — — 2,635,879
Share-based payment charge — — 19,771 — 19,771
Balance at 31 March 2010 1,464,465 4,795,033 7,178,728 (7,062,864) 6,375,362
Other reserves relate to negative goodwill arising on the acquisition of a subsidiary undertaking prior to 1 April 1997, merger reserve and 
net foreign exchange movements in connection with overseas subsidiaries.
10. relateD party transactions
John Wisbey made advances to the Company of £20,000 and £600,000 on 29 June 2007 and 31 August 2007 respectively. This loan was 
subject to review on 31 October 2007 and repayable by 29 February 2008. On 18 February 2008, £150,000 was repaid to John Wisbey, 
leaving a balance outstanding of £470,000 at the end of the financial year to March 2008. In 2008 John Wisbey made further advances of 
£200,000 and £420,000 respectively in July and August 2008. The balance outstanding to him at the end of the financial year to March 2009 
was therefore £1,090,000. In August 2009 John Wisbey made another advance of £100,000. The total balance outstanding to him of 
£1,190,000 was settled in October 2009 partially (£790,000) by conversion of 0.5p ordinary shares at 4p per share as the same time and price 
as the institutional placing and partially (£400,000) by cash payment. The loan carried interest at 1% per month during the outstanding periods.
Ian Peacock advanced an amount of £10,000 to the Company on the 12 July 2007. Michael Thomas advanced a sum of £30,000 on the 
29 June 2007. The loan was interest free until 31 March 2008 and thereafter the loan attracted interest of 1% per month. Both Ian Peacock 
and Michael Thomas loans were settled in October 2009 by conversion of the full outstanding balance to 0.5p ordinary shares at 4p per share. 
Both loans carried interest at 1% per month before settlement.
In June 2008 Brian Crowe advanced £200,000 to the Company. In July 2009 Brian Crowe made further advance of £200,000. The total 
balance £400,000 was settled in October 2009 half by conversion to 0.5p ordinary share and half by cash payment. The loan carried interest 
at 1% per month while outstanding.
There are no outstanding Directors’ loans at the end of the financial year.
_0_LRM_ar10_back.indd   27 10/09/2010   13:15:18 comp any information
company registration number
3224870
directors
phiLip crawford 
Chairman
John wisbey
Chief Executive Officer
nick davies
Chief Technology Officer 
ian peacock 
Deputy Chairman
brian crowe
Non-Executive Director
mike shinya
Non-Executive Director
company secretary
Lisa t an
registered office
7th Floor Ludgate House 
245 Blackfriars Road 
London 
SE1 9UF
nominated advisor and broker
aLLenby c apitaL
Claridge House  
32 Davies Street, Mayfair 
London 
W1K 4ND
auditors
grant thornton uk LLp Grant Thornton House 
Melton Street 
Euston Square 
London 
NW1 2EP
corporate soLicitors
memery crystaL
44 Southampton Buildings 
London 
WC2A 1AP
registrars
computershare investor 
services pLc
PO Box 859 
The Pavilions 
Bridgwater Road 
Bristol 
BS99 1XZ
bankers
nationaL westminster bank pLc
180 Brompton Road 
London 
SW3 1HL
hsbc bank
28 Borough High Street 
London 
SE1 1YB
dates
annuaL generaL meeting 
30 September 2010
The mission at Lombard Risk has always been 
to help the financial industry to improve the 
approach to managing the operational risk 
in their businesses. That mission remains 
unchanged today as Lombard Risk continues 
to deliver innovative specialised software 
solutions that help our customers improve 
the management and reporting of collateralised 
trading, liquidity and regulatory compliance.
For over 20 years Lombard Risk Management plc 
(“Lombard Risk”) has delivered industry-leading 
global risk management and regulatory 
compliance software. Today, Lombard Risk is 
one of the world’s recognised leading providers 
of collateral management and regulatory 
compliance solutions to financial organisations 
and large corporations around the world. 
Our award-winning global solutions enable 
the financial industry to improve the management 
of counterparty risk, collateral risk, trading risk, 
liquidity risk reporting, financial crime detection 
and global regulatory reporting, together with 
excellent MIS reporting.
corporate 
st atement
_1LRM_ar10_cover for indexpdf.indd   2 10/09/2010   13:14:45 Lombard risk management pLc
7th Floor Ludgate House 
245 Blackfriars Road 
London SE1 9UF 
UK 
tel: +44 (0)20 7593 6700 
fax: +44 (0)20 7593 6780 
e: investorrelations@lombardrisk.com
www.lombardrisk.com
Lombard r isk 
management pLc
annual report and 
accounts 2010
MANAGING COLLATERALISED TRADING 
ENABLING REGULATORY COMPLIANCE
Lombard risk management pLc annual report and accounts 2010
_1LRM_ar10_cover for indexpdf.indd   1 10/09/2010   13:14:44