Record

LN: REC

£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
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Share price graph
Balance sheet
Forecast net cash (£m) 6.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (1.0) 15.4 20.8
Relative* (5.7) (1.1) 34.1
52-week high/low 49.0p/26.3p
*% relative to local index
Key management
Neil Record Chairman
Leslie Hill CEO
Steve Cullen CFO
Bob Noyen Chief Investment Officer

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