Defenx, Lloyds Bank and Lombard Risk

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“Blue-chips opened lower despite Wall Street's strong finish with traders looking for guidance regarding the direction of the UK economy with preliminary GDP figures, high street lending and services data due to be released later this morning,” says AJ Bell Investment Director Russ Mould.

“Cyber-security software group Defenx lost more than a third of its value in early trading after it warned that it currently expected to report a full-year loss. The group’s revenue is dependent on the start of a small number of high value contracts but it now seems unlikely that these will come through in time for this year’s results. The group has also been trying to broaden its product portfolio, notably to address the corporate sector, but this is also behind schedule. The group’s shares were down by more than 34.3%.

Lloyds Bank posted strong third quarter figures with statutory pre-tax profits up 141% at £1.9bn. Provision for covering the cost of claims for mis-sold payment protection insurance has seemed like a black hole in recent years but Lloyds felt confident that no further provision was needed in the third quarter. This suggests that Lloyds feels an end may now be in sight although as the deadline for claims is nearly two years away another flurry cannot be ruled out. The bank’s shares were down by over 1.3%.

Lombard Risk Management's shares plunged after pre-tax losses widened following a challenging first half. Revenue for the six months to the end of September fell by 16.4% to £12.7m due to a temporary drop in services revenues and some delays in contract signings. The size and quality of its pipeline is at an all-time high but the group has a lot to do in the second half if it is going to meet full-year forecasts. Lombard Risk’s shares were down by more than 30.2%.”

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