Last close As at 05/08/2026
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▲ 0.20 (0.45%)
Market capitalisation
GBP89m
Research: Financials
Record reported steady progress in its Q125 trading update. Assets under management (AUM) grew $0.5bn in the quarter to $102.7bn, driven by market and other movements of +$1bn offset by a modest net $0.5bn outflow. The AUM progression is in line with our end-FY25 estimate of $104.7bn. Performance fees surprised positively at £1.6m in the quarter, not much below our £2m estimate for the full year. We are not changing our estimates at this stage.
Written by
Record |
Strong performance fees |
Q125 trading update |
Financials |
29 July 2024 |
Share price performance
Business description
Analysts
Record is a research client of Edison Investment Research Limited |
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Record reported steady progress in its Q125 trading update. Assets under management (AUM) grew $0.5bn in the quarter to $102.7bn, driven by market and other movements of +$1bn offset by a modest net $0.5bn outflow. The AUM progression is in line with our end-FY25 estimate of $104.7bn. Performance fees surprised positively at £1.6m in the quarter, not much below our £2m estimate for the full year. We are not changing our estimates at this stage.
Year end |
Revenue (£m) |
PBT |
EPS* |
DPS** |
P/E |
Yield |
03/23 |
44.7 |
14.6 |
5.81 |
4.50 |
11.7 |
6.6 |
03/24 |
45.4 |
12.9 |
4.78 |
4.60 |
14.3 |
6.7 |
03/25e |
41.8 |
12.1 |
4.69 |
4.65 |
14.5 |
6.8 |
03/26e |
45.0 |
14.0 |
5.43 |
4.70 |
12.6 |
6.9 |
Note: *EPS is normalised and fully diluted. **DPS excludes special dividends.
Markets remained supportive for Record in Q125 (ending 30 June 2024), offsetting a modest net business outflow of $0.5bn. Net in/outflows vary from quarter to quarter depending on client circumstances. Most of the outflow (-$1.2bn) was from the higher-margin Custom Solutions segment reversing a net inflow of $0.8bn in the previous quarter in this segment. Hedging for Asset Managers added $1bn in new money, following an inflow of $0.9bn in the previous quarter.
We remind readers that Record’s management expects net inflows to remain subdued until the strategy review is completed later this year, after which marketing efforts should ramp up again. Hence, this quarter’s performance should not be seen as representative of the medium-term outlook. Overall average fee rates were stable according to management.
Performance fees were again very strong at £1.6m for the quarter. Record generated strong performance fees of £5.8m in both FY23 and FY24 and our forecasts assume a conservative £2m ‘normalised’ rate in FY25 and FY26. The environment for generating performance fees has been much more supportive in the last couple of years as central banks reversed extremely accommodative monetary policy, and as geopolitics and deglobalisation have become more prominent themes. Modest policy rate cuts expected by the market in the second half of CY24 should not completely reverse this better environment.
Record trades at 14.5x and 12.6x our FY25 and FY26 EPS estimates, respectively, while paying an attractive dividend due to its strong balance sheet and cash-generative business. The company will next update the market on Q2 performance on 25 October 2024.
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Research: Healthcare
Immix Biopharma has received a grant of US$8m from the California Institute for Regenerative Medicine (CIRM) to advance clinical development of its lead CAR-T asset, NXC-201, in relapsed/refractory amyloid light chain amyloidosis (r/r ALA). We believe that this backing from the government agency not only bolsters the company’s capital position (cash runway estimated to extend to Q425), but also provides external endorsement of its efforts towards developing the first outpatient CAR-T treatment while addressing the unmet medical need in ALA. We remind readers that Immix recently dosed the first patient in the US as part of the Phase Ib NEXICART-2 trial, which plans to complete enrollment (expected n=40) by end-2025. If the data are supportive, we expect the company to follow it up with a Biologics License Application (BLA) submission to the FDA.