Currency in GBP
Last close As at 03/02/2023
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▲ −0.10 (−0.10%)
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GBP191m
Research: Financials
Record is continuing to make good progress with its strategy of developing new capabilities and products to augment its core currency management services. This holds out the prospect of significantly higher and more diversified revenue and profit by FY25. In the meantime, existing currency strategies have performed well against a more volatile market background, which also creates a favourable background for conversations with potential clients for well-established hedging services.
Record |
Showing good growth and on track strategically |
H123 results |
Financial services |
12 December 2022 |
Share price performance
Business description
Next events
Analysts
Record is a research client of Edison Investment Research Limited |
Record is continuing to make good progress with its strategy of developing new capabilities and products to augment its core currency management services. This holds out the prospect of significantly higher and more diversified revenue and profit by FY25. In the meantime, existing currency strategies have performed well against a more volatile market background, which also creates a favourable background for conversations with potential clients for well-established hedging services.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS** |
P/E |
Yield |
03/21 |
25.4 |
6.2 |
2.73 |
2.30 |
31.9 |
2.6 |
03/22 |
35.2 |
10.9 |
4.37 |
3.60 |
19.9 |
4.1 |
03/23e |
42.0 |
13.2 |
5.45 |
4.10 |
16.0 |
4.7 |
03/24e |
43.5 |
13.7 |
5.22 |
4.20 |
16.7 |
4.8 |
Note: *EPS is diluted. **DPS excludes special dividends.
A strong first half result
Record reported a strong H123 result with revenues up 35% compared with H122. This included an 18% increase in management fees, reflecting c 10% higher average sterling assets under management equivalent (AUME) and a richer fee-rate product mix. In addition, there were performance fees of £2.8m (nil H122, £0.5m H222) as increased market interest rate differentials provided opportunities to earn performance fees on enhanced hedging mandates. Pre-tax profit increased to £7.5m (+46%), basic EPS to 3.27p (+57%) and the interim dividend to 2.05p (+14%).
Looking towards diversifying growth
The group continues to make progress on its diversification plans and notes that current market volatility underlines the relevance of its currency management products for potential clients. The performance of several existing currency products gives encouragement, work on enhancing the group’s IT platform continues on time and to budget and the pipeline of further partnering/new product initiatives (including a measured entry into the area of digital assets) provides a range of potential avenues for diversifying growth. Against this background and despite the difficult macroeconomic climate, the group reiterates its aspiration to achieve revenue of over £60m by FY25 (FY22: £35m).
Valuation
There are limited changes in our estimates with a small increase in earnings for FY23 and a small decrease for FY24 reflecting updated exchange rate, fund flow and fee margin assumptions. Record shares have substantially outperformed UK asset managers year-to-date and trade on above their peer-average P/E and EV/EBITDA multiples, although within the range for these companies. The group has reaffirmed its FY25 targets, which would imply a sharply reduced P/E multiple and a correspondingly increased dividend yield as the benefits of new product initiatives are realised.
Record in numbers
We have updated our compilation of information provided by Record on AUME, fee income, clients and asset class exposure (Exhibit 1). This includes our calculations of estimated average fee rates by strategy and hedging fee exposure by underlying asset class.
We highlight several points:
■
Hedging services in total account for 89% of AUME and 64% of management fees, reflecting the lower fee rates that apply to passive hedging. The growth in dynamic hedging and currency for return since FY19 has reduced the proportion of management fees accounted for by passive hedging from 52% to 33% in H123.
■
Since 2018 AUME has increased from $62.2bn to $80.8bn in H123 (compound annual growth of 6%). The average fee rate rose slightly over the period, from 5.1bps to 5.8bps.
■
Within the client base, 75% of AUME is accounted for by corporate and public pension funds. Measured by AUME, 51% have been in place for over six years. However, with the renewed focus on growth over the past two years there is a healthy inflow of new clients, which often start with a relatively low AUME level; by number, 46% of clients have joined Record within three years.
■
Geographically, Switzerland accounts for 37% of revenue followed by the United States (32%).
■
We estimate 54% of hedging mandate fees relate to underlying equity assets, 15% to fixed income and 31% to other assets.
Exhibit 1: Record profile in numbers (H123 except where indicated)
Analysis by strategy |
|||||||||||||||||||||||
AUME (%) |
Management fees (%)* FY19 |
H123 |
Est. average fee rate (bps)** |
||||||||||||||||||||
Dynamic hedging |
12.4 |
20.6 |
30.5 |
13.5 |
|||||||||||||||||||
Passive hedging |
77.0 |
52.0 |
33.4 |
2.6 |
|||||||||||||||||||
Currency for return |
5.3 |
8.0 |
18.7 |
18.8 |
|||||||||||||||||||
Multi-product |
5.2 |
19.4 |
17.4 |
18.4 |
|||||||||||||||||||
Cash |
0.1 |
N/A |
N/A |
0 |
|||||||||||||||||||
Total |
100.0 |
100.0 |
100.0 |
5.8 |
|||||||||||||||||||
Value |
$80.8bn |
£22.3m |
£19.0m |
||||||||||||||||||||
Client analysis |
|||||||||||||||||||||||
Concentration (FY22) |
% AUME |
Type |
% AUME |
Longevity (years) |
% Clients |
% AUME |
|||||||||||||||||
Top 10 |
52 |
Corporate pension funds |
41 |
0-1 |
16 |
13 |
|||||||||||||||||
Next 10 |
35 |
Public pension funds |
34 |
1–3 |
30 |
21 |
|||||||||||||||||
Balance |
12 |
Foundations & trusts |
8 |
3–6 |
29 |
15 |
|||||||||||||||||
Other |
17 |
6–10 |
12 |
29 |
|||||||||||||||||||
>10 |
13 |
22 |
|||||||||||||||||||||
100 |
100 |
100 |
100 |
||||||||||||||||||||
Geographical analysis and AUME progression |
|||||||||||||||||||||||
By client location |
% revenue |
By invoice currency (FY22) |
% revenue |
AUME progression |
($bn) |
||||||||||||||||||
Switzerland |
37 |
US dollar |
50 |
2018 |
62.2 |
||||||||||||||||||
US |
32 |
Swiss franc |
28 |
2019 |
57.3 |
||||||||||||||||||
Europe (rest) |
22 |
Euro |
10 |
2020 |
58.6 |
||||||||||||||||||
UK |
6 |
Sterling |
7 |
2021 |
80.1 |
||||||||||||||||||
Other |
4 |
Other |
4 |
2022 |
83.1 |
||||||||||||||||||
100 |
100 |
H123 |
80.8 |
||||||||||||||||||||
Underlying asset class exposure of dynamic and passive hedging AUME (%) |
|||||||||||||||||||||||
Dynamic |
Passive |
Estimated % of hedging fees |
|||||||||||||||||||||
Equity |
90 |
21 |
54 |
||||||||||||||||||||
Fixed income |
0 |
29 |
15 |
||||||||||||||||||||
Other |
10 |
50 |
31 |
||||||||||||||||||||
100 |
100 |
100 |
Source: Record, Edison Investment Research. Notes: *Management fee excluding performance fees. **Fee rate is our own calculation and within each strategy there will be a range of mandate types and fee structures/levels. Rounding may mean some columns do not sum.
H123 results analysis
As announced in the October Q223 trading update, total AUME stood at $80.8bn at end-September. This was 2.8% below the end-March level and 3.9% below the end-H122 figure (see Exhibit 2). Net AUME inflows of $8.6bn in H123 (the fourth consecutive half-year period of inflows) included $5.6bn from new client mandates. These inflows were more than offset by market, foreign exchange and other moves totalling $10.9bn in a period of elevated volatility.
Weakness in the pound mean that in sterling terms AUME increased by 14.6% in H123 to £72.3bn. We calculate that average AUME in sterling terms for H123 was 10% above the prior year period and nearly 5% above H222.
Exhibit 2: AUME progression
End period AUME ($bn) |
AUME movements ($bn) |
|||||
$bn |
H122 |
H222 |
H123 |
H122 |
H222 |
H123 |
Net flows |
||||||
Dynamic hedging |
10.3 |
10.6 |
10.0 |
0.6 |
0.8 |
1.7 |
Passive hedging |
63.0 |
62.8 |
62.2 |
0.3 |
0.8 |
7.2 |
Currency for return |
5.4 |
5.0 |
4.3 |
1.0 |
(0.6) |
(0.3) |
Multi-product |
5.2 |
4.5 |
4.2 |
0.0 |
(0.5) |
0.0 |
Cash and futures |
0.2 |
0.2 |
0.1 |
0.0 |
0.0 |
0.0 |
Total |
84.1 |
83.1 |
80.8 |
1.9 |
0.5 |
8.6 |
Other movements |
||||||
Markets |
1.8 |
(1.5) |
(4.8) |
|||
FX and scaling for mandate volatility targeting |
0.3 |
0.0 |
(6.1) |
|||
Total change |
4.0 |
(1.0) |
(2.3) |
Source: Record, Edison Investment Research
Key points from the income statement
The profit and loss (P&L) account for H123 is set out in Exhibit 3. We comment on key areas below, with comparisons versus H122 unless stated.
■
Management fees increased by 18% reflecting a 10% increase in average AUME (in sterling terms), and changes in the fee-rate mix. The largest increase was in currency for return fees, which benefited from the launch of the Record Emerging Market Sustainable Finance Fund (EMSF), which we estimate has a fee rate similar to comparable actively managed fixed income funds at 50–60bps. As a result, the average fee rate within currency for return increased from 12.5bps to 18.8bps, while the overall average fee rate increased by 7% (from 5.4bps to 5.8bps).
■
Total revenue rose 35% with a £2.8m performance fee earned (nil) as increased interest rate differentials in the market created better opportunities for enhanced passive hedging mandates to add value.
■
Administrative expenses increased by 36%, within which personnel costs before the group bonus scheme increased by 26% versus H122 and 9% from H222. Broadly in line with pre-bonus operating profit, bonus payments increased from £2.8m to £3.8m. As a percentage of pre-bonus operating profit (33%), the payment was still towards the top of the group’s 25–35% target range but below the H122 level of 35%. Attracting and retaining staff remains a priority and the significant year-on-year rise in personnel costs reflects promotions, pay increases and recruitment as part of the succession planning element of the group’s strategy. Since the period end a £3,000 flat payment has been made to staff who are not directors as a one-off recognition of inflationary pressures, particularly for those on lower salaries. Non-personnel costs rose 55% compared with H122 and 5% versus H222 to £4.5m. This included costs related to the modernisation of IT systems and the employment of contractors as part of these projects. Data costs and the cost of office space in London are other contributors. The London office is proving valuable in staff recruitment and retention. Ongoing costs related to new systems and continuing investment to support client service and product innovation are expected to remain a feature of the group P&L, but, as seen in the H123 to H222 comparisons, the rate of cost increase is likely to be much lower.
■
Pre-tax profit increased by 46% and, with the effective tax rate of 18% versus 22%, the increase in diluted EPS was 58%.
■
The interim dividend is increased from 1.80p to 2.05p (+14%). The dividend policy is unchanged with a target ordinary dividend payout range of 70–90% of annual earnings set at a level allowing sustainable growth. The board still intends to pay out earnings in excess of ordinary dividends, taking into account capital requirements (including regulatory requirements and a buffer for operating expenses, working capital and investment expectations). Such payments would usually be in the form of a special dividend.
Exhibit 3: Profit and loss analysis
£000s |
H122 |
H222 |
H123 |
Change versus H122 |
Change versus H222 |
Dynamic hedging |
4,783 |
5,237 |
5,780 |
20.8% |
10.4% |
Passive hedging |
5,802 |
5,966 |
6,328 |
9.1% |
6.1% |
Currency for return |
2,077 |
3,436 |
3,544 |
70.6% |
3.1% |
Multi-product |
3,446 |
3,336 |
3,308 |
-4.0% |
-0.8% |
Management fees |
16,108 |
17,975 |
18,960 |
17.7% |
5.5% |
Performance fees |
0 |
499 |
2,833 |
N/A |
467.7% |
Other investment services income |
225 |
345 |
266 |
18.2% |
-22.9% |
Total revenue |
16,333 |
18,819 |
22,059 |
35.1% |
17.2% |
Cost of sales |
(206) |
(13) |
(3) |
-98.5% |
-76.9% |
Gross profit |
16,127 |
18,806 |
22,056 |
36.8% |
17.3% |
Administrative expenses |
(10,713) |
(13,013) |
(14,561) |
35.9% |
11.9% |
Other income/expense |
(264) |
(108) |
21 |
N/A |
N/A |
Operating profit |
5,150 |
5,685 |
7,516 |
45.9% |
32.2% |
Net finance income |
4 |
17 |
28 |
600.0% |
64.7% |
Profit before tax |
5,154 |
5,702 |
7,544 |
46.4% |
32.3% |
Taxation |
(1,156) |
(1,069) |
(1,334) |
15.4% |
24.8% |
Profit after tax |
3,998 |
4,633 |
6,210 |
55.3% |
34.0% |
Diluted EPS (p) |
2.01 |
2.33 |
3.16 |
57.6% |
35.6% |
DPS (p) |
1.80 |
2.72 |
2.05 |
13.9% |
Source: Record, Edison Investment Research
Turning to product investment performance, Record reports that increased market volatility has provided the backdrop for strong performances by a number of its products. In passive hedging the enhanced passive hedging product added value; during H123 a representative account recorded a positive return of 11bps relative to a fixed-tenor benchmark and since inception there was a positive return of 10bps per year. For comparison, the average fee rate in passive hedging is under 3bps.
Strength in the US dollar created the conditions for dynamic hedging to add substantial value for US investors. For a representative account the value added in H123 was 648bps and the since-inception return was +95bps per year.
Within currency for return products, the EMSF fund (US dollar share class) has seen negative returns reflecting the difficult background for emerging markets during a period of dollar strength. However, it has significantly outperformed relevant indices such as the JP Morgan GBI-EM Global Diversified Index with a return since inception of -3.61% compared with -23.46% for the index. Based on this outperformance, Record sees scope to market this strategy more broadly to attract reallocation within the sector. There is also the potential for increased allocations to the fund itself in due course from within Record’s strategic partner, UBS Wealth Management.
Strategy on track
Record reports that it is progressing well in implementing its strategy to accelerate growth in a sustainable way. As a reminder this has three strands: diversification, modernisation and succession.
Diversification is well underway with the EMSF fund and the Municipal Bond fund both launched (though the latter is having limited traction to date because of changes in the market background). There are a range of other initiatives in progress with further details to be given in the group’s capital markets afternoon in February 2023. These include products involving supply chain finance, Sharia finance, infrastructure and digital assets. All reflect expressed client interest and are being developed with partners that have expertise in each area. Record can bring the ability to provide a fund structure, administration and client access (it has a Luxembourg fund platform and has received a BaFin licence in Germany). Management stresses that currency management remains core for the group and that no individual new product will be allowed to become too dominant. This was underlined in relation to digital assets (including a potential crypto fund). Group investment here is to be capped at £2m and care has been taken to select partners (both funds and direct investments) whose track record and governance are seen as appropriate.
As noted earlier, costs have risen in part because of the investment in IT modernisation to increase efficiency in the business, facilitate new products and increase scalability. IT projects are running on time and to budget.
Confidence in succession planning has built following two years of change involving new senior appointments (chief executive, chief investment officer and chief technology officer) and other promotions through the organisation to unlock talent and position the group for longer-term progress. Chief Executive Leslie Hill indicates that she would wish to stay in position to ‘a little beyond’ the end of the group’s three-year plan to FY25. This points to continuity of management over an important phase of the group’s development.
The group reiterates the financial targets previously given for the three-year plan: revenue of over £60m for FY25 based on detailed assessment of the product pipeline and an operating margin of c 40%, subject to inflation levels.
Outlook, estimate changes and financial position
As outlined above Record is making good progress in developing its platform and new product initiatives. Meanwhile performance of existing products has been more positive and currency volatility provides a positive environment for conversations with potential clients. At this point the timing and scale of new product launches is uncertain so they are not factored into our forecasts for FY23–24. The capital markets afternoon in February 2023 may provide a framework to make estimates of the impact of the diversification programme. In the meantime, the group’s target revenue for FY25 gives an indication of its aspirations for the impact of growth in new and existing products.
Exhibit 4 sets out headline changes in our estimates. These reflect the strong performance in H123, currency movements, updated fee rates and more conservative estimates for near-term additions to the ESMF fund. We no longer assume inflows to the municipal bond fund although the revenue effect of this is small given the expected fee rate of c 13bp. In a departure from previous practice, we now include assumed performance fees (H223 £1m and FY24 £2.5m) reflecting the more favourable environment for the enhanced passive hedging service. This increases the risk to estimates but it seems reasonable to reflect some of the potential from this episodic source of revenue.
Exhibit 4: Estimate changes
|
Revenue (£m) |
PBT (£m) |
EPS (p) |
DPS (p)* |
||||||||
|
Old |
New |
Change (%) |
Old |
New |
Change (%) |
Old |
New |
Change (%) |
Old |
New |
Change (%) |
03/23e |
41.3 |
42.0 |
2% |
13.1 |
13.2 |
1% |
5.30 |
5.45 |
3% |
4.40 |
4.10 |
-7% |
03/24e |
45.1 |
43.5 |
-4% |
14.4 |
13.7 |
-5% |
5.39 |
5.22 |
-3% |
4.55 |
4.20 |
-8% |
Source: Edison Investment Research. Notes: *Dividend excludes any special payment.
The dividend estimates shown exclude special dividends. Based on our FY23 and FY24 basic earnings estimates and assuming a near 100% payout, we pencil in special payments of 1.55p and 1.20p, respectively, giving total dividends of 5.65p and 5.40p. The reduction in FY24 reflects a lower performance fee assumption following the relatively high level of performance fees crystallised in H123.
The group figure for net cash and equivalents at end September was £17.7m compared with cash and money market instruments of £17.3m at the year end. The group capital position remains strong. At the end of FY22 Record had regulatory capital resources of £25.3m compared with a regulatory capital requirement of £5.4m. The introduction of new products may increase the capital requirement, but the capital position is seen as well able to support the growth envisaged in the three-year plan.
As in our last note in July, it is interesting to consider a scenario that could generate over £60m in revenue and a 40% operating margin in line with the group’s targets for FY25. Starting with AUME, we envisage most of the growth required falling within the multi-product category but also allow for additional inflows in currency for return and dynamic hedging. Our scenario assumes average AUME of just over $91bn compared with existing estimates of $81.2bn and $84.9bn for FY23 and FY24, respectively. We allow for a marked increase in multi-product fee rate at 30bp (compared with 18.4bp currently assumed for FY24, for example) and a smaller increase for currency for return both reflecting the effects of new higher-margin products, with fee rates potentially ranging between 20bp and 50bp. The overall group average fee rate is assumed to rise to 7.8bp (compared with 5.6bp and 5.8bp respectively in our FY23 and FY24 estimates). Adding performance fees of £2m gives revenue just above £60m. On costs we allow for a 21% increase in total operating expenses compared with our FY24 estimate, reflecting mainly an increase in group profit share but still generating considerable operating leverage and matching the target 40% operating margin. This would give pre-tax profit of c £24.5m and diluted EPS of over 9p.
Valuation comparison
Exhibit 5 shows an updated version of our comparative valuation table, with a selection of quoted UK fund managers. Year-to-date, the comparator asset managers share prices are down 33% on average, while Record shares are 6% higher, a reflection of its lower sensitivity to equity market volatility and the growth it is demonstrating. It trades at a premium to the average calendarised P/E and EV/EBITDA multiples for the comparators, although within the range of multiples. Delivery of growth in line with the group’s three-year plan would bring the final year multiple below 10x. On our estimates, Record’s prospective yield (including special dividend) would be over 6% for FY23 and FY24 and, on our FY25 scenario, c 11%.
Exhibit 5: Comparing valuation with UK fund managers
Price |
Market cap (£m) |
P/E 2022e (x) |
EV/EBITDA 2022e (x) |
Dividend yield (%) |
|
Ashmore |
218 |
1,551 |
13.4 |
5.0 |
7.7 |
City of London Investment Group |
424 |
214 |
11.1 |
N/A |
7.8 |
Impax Asset Management |
756 |
1,000 |
20.1 |
13.8 |
3.7 |
Jupiter |
129 |
703 |
13.2 |
4.1 |
13.3 |
Liontrust |
1,016 |
658 |
9.6 |
5.7 |
7.1 |
Man Group |
204 |
3,190 |
5.5 |
4.2 |
5.8 |
Polar Capital |
477 |
479 |
11.2 |
5.5 |
9.6 |
Schroders |
448 |
7,204 |
12.9 |
10.4 |
4.6 |
Average |
12.1 |
7.0 |
7.5 |
||
Record |
87.00 |
173 |
16.8 |
11.2 |
4.1 |
Source: Refinitiv, Edison Investment Research. Note: P/E and EV/EBITDA on a calendar-year basis. Record’s (FY22) dividend yield excludes the special dividend. Priced at 9 December 2022.
Exhibit 6: Financial summary
Year end 31 March |
£'000s |
|
2019 |
2020 |
2021 |
2022 |
2023e |
2024e |
PROFIT & LOSS |
|
|
|
|
|
|
|
|
Revenue |
|
|
24,973 |
25,563 |
25,412 |
35,152 |
41,975 |
43,512 |
Operating expenses |
|
|
(17,089) |
(17,996) |
(19,333) |
(23,945) |
(28,840) |
(30,133) |
Other income/(expense) |
|
|
(8) |
82 |
41 |
(372) |
(40) |
(40) |
Operating profit (before amort. and except.) |
|
|
7,876 |
7,649 |
6,120 |
10,835 |
13,095 |
13,339 |
Finance income |
|
|
113 |
88 |
33 |
21 |
124 |
330 |
Profit before tax |
|
|
7,989 |
7,737 |
6,153 |
10,856 |
13,219 |
13,669 |
Taxation |
(1,559) |
(1,365) |
(802) |
(2,225) |
(2,512) |
(3,417) |
||
Minority interests |
|
|
0 |
48 |
0 |
0 |
0 |
0 |
Attributable profit |
|
|
6,430 |
6,420 |
5,351 |
8,631 |
10,707 |
10,252 |
|
|
|
|
|
|
|
|
|
Revenue/AuME (excl. perf fees) bps |
|
|
4.9 |
4.9 |
4.8 |
5.6 |
5.6 |
5.8 |
Operating margin (%) |
|
|
31.5 |
29.9 |
24.1 |
30.8 |
31.2 |
30.7 |
|
|
|
|
|
|
|
|
|
Average number of shares outstanding (m) |
|
|
198.1 |
197.1 |
196.2 |
197.3 |
196.4 |
196.4 |
Basic EPS (p) |
|
|
3.27 |
3.26 |
2.75 |
4.52 |
5.64 |
5.40 |
EPS - diluted (p) |
|
|
3.25 |
3.26 |
2.73 |
4.37 |
5.45 |
5.22 |
Dividend per share (p) |
|
|
2.30 |
2.30 |
2.30 |
3.60 |
4.10 |
4.20 |
Special dividend per share (p) |
|
|
0.69 |
0.41 |
0.45 |
0.92 |
1.55 |
1.20 |
Total dividend (p) |
|
|
2.99 |
2.71 |
2.75 |
4.52 |
5.65 |
5.40 |
|
|
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
2,161 |
4,868 |
5,153 |
6,084 |
6,318 |
6,028 |
Intangible assets |
|
|
288 |
470 |
420 |
562 |
1,211 |
1,561 |
Tangible assets |
|
|
761 |
751 |
683 |
401 |
345 |
165 |
Investments |
|
|
1,112 |
2,472 |
3,046 |
3,447 |
3,606 |
3,606 |
Other |
|
|
0 |
1,175 |
1,004 |
1,674 |
1,156 |
696 |
Current assets |
|
|
31,427 |
31,149 |
28,045 |
27,141 |
29,423 |
28,298 |
Debtors |
|
|
7,562 |
8,704 |
8,006 |
9,883 |
11,021 |
12,436 |
Cash |
|
|
12,966 |
14,294 |
6,847 |
3,345 |
18,391 |
15,851 |
Money market instruments |
|
|
10,735 |
7,958 |
12,932 |
13,913 |
0 |
0 |
Other |
|
|
164 |
193 |
260 |
0 |
11 |
11 |
Current liabilities |
|
|
(6,158) |
(6,955) |
(5,992) |
(6,210) |
(6,658) |
(6,837) |
Creditors |
|
|
(2,736) |
(3,009) |
(3,426) |
(4,721) |
(4,976) |
(5,615) |
Financial liabilities |
|
|
(2,621) |
(2,191) |
(1,696) |
0 |
0 |
0 |
Other |
|
|
(801) |
(1,755) |
(870) |
(1,489) |
(1,682) |
(1,222) |
Non-current liabilities |
|
|
(29) |
(901) |
(407) |
(1,085) |
(960) |
(960) |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
27,401 |
28,161 |
26,799 |
25,930 |
28,123 |
26,529 |
Minority interests |
|
|
60 |
132 |
0 |
0 |
0 |
0 |
Net assets attributable to ordinary shareholders |
|
|
27,341 |
28,029 |
26,799 |
25,930 |
28,123 |
26,529 |
|
|
|
|
|
|
|
|
|
No of shares at year end (m) |
|
|
199.1 |
199.1 |
199.1 |
199.1 |
199.1 |
199.1 |
NAV per share p |
|
|
13.7 |
14.1 |
13.5 |
13.0 |
14.1 |
13.3 |
|
|
|
|
|
|
|
|
|
CASH FLOW |
|
|
|
|
|
|
|
|
Operating cash flow |
|
|
7,026 |
6,543 |
6,798 |
11,355 |
11,359 |
10,106 |
Capital expenditure |
|
|
(72) |
(243) |
(230) |
(75) |
(300) |
(170) |
Cash flow from other investing activities |
|
|
(561) |
1,513 |
(6,210) |
(3,392) |
13,735 |
(170) |
Dividends |
|
|
(5,517) |
(5,888) |
(5,290) |
(6,512) |
(9,250) |
(11,346) |
Other financing activities |
|
|
(613) |
(943) |
(2,368) |
(5,019) |
(688) |
(960) |
Other |
|
|
205 |
346 |
(147) |
141 |
190 |
0 |
Net cash flow |
|
|
468 |
1,328 |
(7,447) |
(3,502) |
15,046 |
(2,540) |
Opening cash/(net debt) |
|
|
12,498 |
12,966 |
14,294 |
6,847 |
3,345 |
18,391 |
Closing net (debt)/cash |
|
|
12,966 |
14,294 |
6,847 |
3,345 |
18,391 |
15,851 |
Closing net (debt)/cash inc money market instruments |
|
23,701 |
22,252 |
19,779 |
17,258 |
18,391 |
15,851 |
|
|
|
|
|
|
|
|
|
|
AUME ($bn) |
|
|
|
|
|
|
|
|
Opening |
|
|
62.2 |
57.3 |
58.6 |
80.1 |
83.1 |
83.8 |
Net new money flows |
|
|
(4.5) |
4.6 |
9.7 |
2.4 |
11.2 |
1.4 |
Market/other |
|
|
(0.4) |
(3.3) |
11.8 |
0.6 |
(10.5) |
0.9 |
Closing |
|
|
57.3 |
58.6 |
80.1 |
83.1 |
83.8 |
86.1 |
Source: Record accounts, Edison Investment Research
|
|
Research: Healthcare
Medlab Clinical has announced that it has cleared the Securities Exchange Commission’s (SEC’s) comments on its Nasdaq listing and is now preparing to finalise its application with its US broker, Alliance Global Partners. After this announcement, we expect Medlab will remain on track to meet its listing target timeline of Q1 CY23, which coincides with the anticipated investigational new drug (IND) submission for NanaBis in the US (to start Phase III trials). Due to the high activity and liquidity associated with the US biotech market, the potential Nasdaq listing could support the company in progressing its development pipeline. Our valuation for Medlab remains unchanged at A$236.1m or A$103.5/share.
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