Record (LSE: REC)

Last close As at 29/02/2024

GBP0.66

−1.40 (−2.08%)

Market capitalisation

GBP135m

Record is a specialist independent currency manager. It 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.

Record continues to grow revenues in its underlying business of currency management at a steady pace. However, its diversification strategy is behind schedule mainly due to legal processes. Positively, Record made good progress in H124, introducing two funds with AUM totalling US$220m and expects to introduce two further funds in H224. Our PBT estimates for FY24 have fallen 4% as we have updated our model for a rising pound sterling/US dollar exchange rate, while our FY25 estimates remain broadly unchanged.

Latest Insights

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Financials | Update

Record — Underlying growth and pipeline are attractive

Financials | Update

Record — Core inflows solid but delays in new product line

Financials | Update

Record — Positive outlook for FY24

Financials | Update

Record — Strong inflows in FY23

Record_resized

Sector

Financials

Equity Analyst

Rob Murphy

Managing Director, Financials and Investment Trusts

Analyst avatar placeholder

Armando Hoxha

Associate Analyst, Financials

Martyn King

Martyn King

Director, Financials

Key Management

  • David Morrison

    Chairman

  • Leslie Hill

    CEO

  • Steve Cullen

    CFO

Balance Sheet

Forecast net debt (£m)

15

Forecast gearing ratio (%)

52

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (5.7) (12.5) (29.6)
Relative (5.5) (14.8) (27.3)
52 week high/low 98.0p/65.0p

Financials

Record reported assets under management equivalent of US$84.5bn in H124, up 5% y-o-y but down 4% h-o-h. Underlying revenue continues to grow and is up 3% y-o-y to £19.6m. Total revenues, however, are down 3% as Record earned less performance fees than in the same period last year. A delay in new product launches and sticky inflation led to a fall in operating margin to 29% (H123: 34%). In line with its policy, Record will pay shareholders an interim dividend of 2.15p, up from 2.05p in H123. In addition to CEO Leslie Hill’s retirement announcement, Steve Cullen has announced his plan to retire in the summer of 2024, culminating 20 years at the company including 10 years as CFO. His successor will be Richard Heading, formerly the Group Finance Director for IG Group PLC.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 35.2 12.2 10.9 4.37 15.1 11.5
2023A 44.7 15.6 14.6 5.81 11.4 10.5
2024E 43.4 13.4 12.8 4.96 13.3 11.4
2025E 47.1 14.4 14.1 5.46 12.1 12.1

Research

Record_resized

Update

Financials

Record — Strong inflows in FY23

Record_resized

Update

Financials

Record — Explaining strategy and growth

Update

Financials

Record — Changes taking effect

Update

Financials

Record — Positive flow and muted market impact Q422

Update

Financials

Record — Evidence of new strategy gaining traction

Update

Financials

Record — Further growth in AUME

Update

Financials

Record — Launch of new EM sustainable finance fund

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