Record (LSE: REC)

Last close As at 18/03/2024

GBP0.67

−0.60 (−0.88%)

Market capitalisation

GBP136m

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 reported AUME of $US99.5bn, up 16% y-o-y. Passive hedging attracted US$11bn in net flows. Approximately US$7bn came from new and existing clients while $4bn was deposited by an existing client, which transferred its funds from multi-product. The transfer resulted in net outflows of US$3.2bn in multi-product. Consequently, the migration of $4bn from multi-product has reduced the average fee rate for the group since fees earned on passive hedging are considerably less than those that can be earned in multi-product. There were no material movements in currency for return and dynamic hedging. Hence, total net flows in Q324 were US$7.9bn. Supporting the climb in AUME were the FX and market moves, which contributed US$7.1bn. Our forecasts are under review.

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 (1.2) (5.6) (20.6)
Relative (4.4) (8.5) (22.9)
52 week high/low 98.0p/64.4p

Financials

Record’s assets under management equivalent (AUME) grew strongly in Q324, jumping US$15bn q-o-q to US$99.5bn, of which US$7.9bn was net inflows and the remainder attributable to FX and market moves. Separately, in January CFO Steve Cullen signalled his intent to retire in the summer of 2024 following a 20-year tenure at Record. He will be succeeded by Richard Heading, who was most recently group finance director for IG Group. The exact date of succession is to be determined.

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 15.6 11.8
2023A 44.7 15.6 14.6 5.81 11.7 10.8
2024E 43.4 13.4 12.8 4.96 13.7 11.7
2025E 47.1 14.4 14.1 5.46 12.5 12.4

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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