Record

LN: REC

£81.4m market cap

40.9p 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

At the end of June (Q121) Record’s AUME stood at $63.3bn, an increase of 8% in both dollar and sterling terms compared with the March year-end levels. Net flows were slightly negative($0.5bn). FX and mandate volatility targeting moves added $1.6bn while market moves were the main positive driver at $3.6bn. Fee rates were flat in the quarter and no performance fees were crystallised. Downward pressure on passive hedging remains a feature and, from the start of Q221, one large passive hedging client has switched from a management fee only to a lower management fee with the potential for performance fees. Taking all these factors into account our estimates were unchanged.

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 12.6 11.5
2020A 25.6 8.5 7.7 3.26 12.5 12.3
2021E 23.7 6.5 5.7 2.37 17.3 12.9
2022E 24.0 6.4 5.6 2.33 17.6 15.1
Industry outlook

Record is progressing with its initiatives to focus on growth. It has launched a new multi-asset product based on its dynamic macro strategy run by John Floyd and is also working on an Impact/ESG bond offering though the timing of this launch has yet to be determined. Work is also underway on IT enhancement projects as highlighted at the time of the full year results. A new, experienced, third party distributor has been appointed in the US (KPG Capital Partners) to extend the reach of Record’s marketing efforts in this market. The Q221 trading update is due 19 October.

Last updated on 24/09/2020
Register to receive research on Record as it is published
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 17.2 6.9 19.8
Relative* 22.9 11.8 48.0
52-week high/low 43.0p/26.3p
*% relative to local index
Key management
Neil Record Chairman
Leslie Hill CEO
Steve Cullen CFO
Bob Noyen Chief Investment Officer

Content on Record