Record

LSE: REC

Market Cap£179m

Last Close 90p

Record is a specialist independent currency manager. It provides a number of products and services, including passive and dynamic hedging, and a range of currency for return strategies, including funds and customised segregated accounts.

Investment summary

At the end of Record’s Q223, to end September, total assets under management equivalent (AUME) stood at $80.8bn, 3.7% above the end June level or up 12.6% in sterling terms to £72.3bn. We calculate that average AUME in sterling terms for H123 was 10% above the prior year period and nearly 5% above H222. There was a net inflow of $6.6bn in Q223 while net market and other moves were negative at $3.7bn. Increased market interest rate differentials allowed enhanced passive hedging service to generate further returns for clients and £0.5m in performance fees in the quarter.

Y/E Mar	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2021A	25.4	7.0	6.2	2.73	33.0	26.0
2022A	35.2	12.2	10.9	4.37	20.6	15.6
2023E	41.3	14.2	13.1	5.30	17.0	16.5
2024E	45.1	15.5	14.4	5.39	16.7	15.9

Industry outlook

The group continues to work on its diversification plans and notes that current market volatility underlines the relevance of its products for potential clients. Further detail on its diversification initiatives will be given at the time of the H123 results on 29 November. Record has previously stated its aspiration to achieve revenue of £60m in FY25 reflecting the realistic potential it sees in existing products and those in development. Subject to inflation and other developments, the group sees scope to reach an operating margin of 40% in the same year.

Last updated on 30/11/2022