Record

LN: REC

£62.2m market cap

31.25p 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 Q319 trading update (to end Dec.) showed AUME down 6.5% in the quarter to $57.8bn, or -4.2% in sterling terms. While below the assumption made in our estimates following H119, this was broadly unsurprising in the context of weakness in equity markets and the previously announced mandate terminations in passive hedging. Positively, there was an inflow in the currency for return area and another performance fee was earned in the quarter (£1.3m, relating to performance over a six-month period), taking performance fees to £2.35m for 9M19.

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 10.8 9.6
2018A 23.8 7.4 7.3 2.98 10.5 23.5
2019E 24.7 7.9 7.5 3.02 10.3 9.4
2020E 21.4 5.3 5.1 2.08 15.0 13.0
Last updated on 21/02/2019
Industry outlook

Our EPS estimate for the current year was increased by 12% following the update, reflecting the additional performance fee, and for FY20 the lower AUME starting point resulted in a 10% reduction (with no performance fees assumed). The group is still seeing a good level of interest in its services diversified by customer, product and geography. The latest performance fee underlines the point that mandates capable of earning such fees have the potential to offset the lower management fees they carry and to counter the competitive pressures that remain a feature of the market.

Last updated on 21/02/2019
Share price graph
Balance sheet
Forecast net cash (£m) 13.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.1 3.3 (34.8)
Relative* (1.5) 1.4 (33.6)
52-week high/low 51.1p/28.6p
*% 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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