£76m market cap

38.2p 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 Q220 update in October was positive, showing assets under management equivalent (AUME) up 2.7% to $59.9bn (+6.1% in sterling terms). The AUME flow was a positive $1.7bn following a modest $0.3bn inflow in Q1. Market movements (+$1.3bn) and exchange rate and mandate volatility targeting movements (-$1.4bn) broadly balanced each other. Most of the AUME inflow was in passive hedging and reflected increased mandates from existing clients (tending to validate Record’s focus on service enhancement and innovation). Two new clients were added in the quarter taking the total to 70 following the addition of three in Q1. No performance fees were crystallised in the quarter.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 23.8 7.4 7.3 2.98 12.8 28.7
2019A 25.0 8.2 8.0 3.25 11.8 10.8
2020E 22.2 6.0 5.8 2.38 16.1 14.3
2021E 23.0 6.2 6.0 2.46 15.5 15.1
Industry outlook

The increase in AUME is encouraging and a positive driver for fee revenue but we estimate this would be broadly offset for the second half and FY21 if the sterling/dollar rate stayed at its current level. Given the potential for further significant Brexit-related moves in the sterling exchange rate in the near term and the proximity of the H120 results, due 22 November, we will review our estimates at that stage.

Last updated on 14/11/2019
Share price graph
Balance sheet
Forecast net cash (£m) 12.1
Forecast gearing ratio (%) N/A
Price performance
Actual 15.1 20.3 11.4
Relative* 13.7 16.9 7.0
52-week high/low 41.2p/27.3p
*% 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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