Shares in Lombard Risk Management, a provider of software to help banks with risk management and regulatory compliance, have more than doubled in the past few months.
In July, news emerged of an approach from a competitor which was said to value the shares at 20p, but no formal offer was made and the price fell back.
However, Société Générale in the summer became the second Tier 1 bank to take the company’s risk management software, signing up for a contract worth more than £2m over two years.
This week the company reported a jump in pre-tax profits from £200,000 to £1.8m, on revenues up 10 per cent to £6.4m, for the first half to September 30.
Having declared a maiden final dividend for last year, the company is to pay a maiden interim dividend of 0.03p.
Allenby Capital, the company’s broker, increased its forecast for pre-tax profits for the full year from £2.3m to £3.1m. It predicted further regulation in the financial sector, so the target market would “continue to grow despite the wider economic malaise”. There is £1.3m of net cash on the balance sheet.