£95m market cap
47.7p 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 reported H121 results in November. AUME stood at $65.9bn at end-September and we calculate that first-half average AUME in sterling terms was up 6.8% y-o-y. Revenue was 4% ahead at £11.8m; while like-for-like fee rates were broadly stable, product/mandate mix meant that the average fee rate for the group was lower at 4.5bp vs 4.8bp for H120. Operating cost growth outpaced revenue, increasing by 10%, reflecting investment in sales capabilities and technology and infrastructure. This left pre-tax profit down from £3.2m in H120 to £2.6m. EPS was 1.10p (1.29p) while the interim dividend (1.15p) was maintained reflecting the board’s confidence in the prospects for the full year.
Y/E Mar |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2019A | 25.0 | 8.2 | 8.0 | 3.25 | 14.7 | 13.4 |
| 2020A | 25.6 | 8.5 | 7.7 | 3.26 | 14.6 | 14.4 |
| 2021E | 24.8 | 6.8 | 5.8 | 2.42 | 19.7 | 18.1 |
| 2022E | 29.5 | 9.8 | 8.9 | 3.67 | 13.0 | 12.8 |
Industry outlook
Prospectively Record will benefit from an $8bn dynamic hedging mandate win announced in September and a collaboration with a European wealth manager to build and manage a Currency Impact Fund. This is expected to be launched early next year. The management fee will be consistent with an actively managed fund. Record also made positive comments on other aspects of its new business pipeline. H221 and FY22 should see progressive benefits from the additions to AUME and cost and efficiency gains as the investments being made in personnel and technology take effect.
Last updated on 21/01/2021
Sector |
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| Financials & real estate |
Share price graph
Balance sheet |
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|---|---|
| Forecast net cash (£m) | 6.7 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
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Key management |
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|---|---|
| Neil Record | Chairman |
| Leslie Hill | CEO |
| Steve Cullen | CFO |
| Bob Noyen | Chief Investment Officer |
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