Record

LN: REC

£60.7m market cap

30.5p 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 Q419 trading update (to end March) showed AUME down 0.9% in the quarter to $57.3bn, or -3.1% in sterling terms. There were total net outflows of £3.4bn relating to Dynamic Hedging (tactical changes that realised gains for the client) and terminations of Passive Hedging mandates, which were largely in line with previous announcements. There was a positive market effect of $3.0bn and a $0.1bn negative for FX and changes on mandate volatility targeting. With no material performance fee crystallised in the quarter, the full year total remains £2.35m. Investment performance in the currency for returns strategies was positive and the longest running Multi-Strategy mandate has recorded a since-inception, ungeared return of +1.02% pa.

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 10.5 9.4
2018A 23.8 7.4 7.3 2.98 10.2 22.9
2019E 24.7 7.9 7.5 3.02 10.1 9.2
2020E 21.4 5.3 5.1 2.08 14.7 12.6
Last updated on 25/04/2019
Industry outlook

The group continues to work on enhancing its products and client service while the diversity of its product offering and customer base is helpful in mitigating fluctuations in demand for currency management and competitive pressures. The performance fee generated in FY19 underlines the point that mandates capable of earning such fees have the potential to offset the lower management fees they carry. Record is due to release its FY19 results on 13 June.

Last updated on 25/04/2019
Share price graph
Balance sheet
Forecast net cash (£m) 13.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.0 0.7 (29.1)
Relative* 1.1 (7.7) (29.2)
52-week high/low 47.0p/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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