£57.8m market cap
29.05p last close
Record is a specialist independent currency manager that 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
Record’s Q319 trading update (to end December) showed AUME down 6.5% in the quarter to $57.8bn, or -4.2% in sterling terms. While below the assumption made in our estimates following H119, this was broadly unsurprising in the context of weakness in equity markets and the previously announced mandate terminations in passive hedging. Positively, there was an inflow in the currency for return area and another performance fee was earned in the quarter (£1.3m, relating to performance over a six-month period), taking performance fees to £2.35m for 9M19.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 23.0 | 7.9 | 7.9 | 2.90 | 10.0 | 8.9 |
| 2018A | 23.8 | 7.4 | 7.3 | 2.98 | 9.7 | 21.8 |
| 2019E | 24.7 | 7.9 | 7.5 | 3.02 | 9.6 | 8.7 |
| 2020E | 21.4 | 5.3 | 5.1 | 2.08 | 14.0 | 12.0 |
| Last updated on 22/03/2019 | ||||||
Industry outlook
Our EPS estimate for the current year was increased by 12% following the update, reflecting the additional performance fee, and for FY20 the lower AUME starting point resulted in a 10% reduction (with no performance fees assumed). The group is still seeing a good level of interest in its services diversified by customer, product and geography. The latest performance fee underlines the point that mandates capable of earning such fees have the potential to offset the lower management fees they carry and to counter the competitive pressures that remain a feature of the market.
Last updated on 22/03/2019
Sector |
|---|
| Financials & real estate |
Share price graph
Balance sheet |
|
|---|---|
| Forecast net cash (£m) | 13.7 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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| *% relative to local index | |||||||||||||||
Key management |
|
|---|---|
| Neil Record | Chairman |
| James Wood-Collins | CEO |
| Steve Cullen | CFO |
| Bob Noyen | Chief Investment Officer |
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