Record

Record (LSE: REC)

Currency in GBP

Last close As at 22/09/2023

GBP0.80

▲ 0.20 (0.25%)

Market capitalisation

GBP151m

Overview
Price performance
Financials
Research
Thematics

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.

UK inflation remains sticky despite interest rates now at 5%. Consequently, Record is likely to face a more challenging cost environment. Notwithstanding this, core revenue momentum is strong and management remains focused on striving towards its ambitious FY25 targets: £60m in revenue, operating margin of c 40% and a dividend payout ratio of 70–90%. Positively, the newly obtained BaFin licence and opening of the Luxembourg Fund Umbrella are expected to result in new revenue sources.

Latest Insights

Financials |
Update

25.07.23

Record — Positive outlook for FY24

Financials |
Update

04.05.23

Record — Strong inflows in FY23

Financials |
Update

02.03.23

Record — Explaining strategy and growth

Financials |
Update

12.12.22

Record — Showing good growth and on track strategically

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Sector

Financials

Equity Analyst

Robert Murphy

Managing Director, Financials and Investment Trusts

Key Management

David Morrison

Chairman
Leslie Hill

CEO
Steve Cullen

CFO

Balance Sheet

Forecast net debt (£m)

Forecast gearing ratio (%)

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	3.1	(7.0)	14.3
Relative	(2.3)	(8.2)	8.9
52 week high/low	98.0p/66.0p

Financials

FY23 revenue of £44.7m was in line with our expectations and headline operating margin increased slightly to 32% (vs 31% in FY22). Net income rose 31% y-o-y to £11.3m but was 5.4% below our estimates, mostly due to a higher tax rate of 22% versus the expected 19%. The ordinary dividend jumped from 3.6p to 4.5p (above our estimate of 4.10p), while a special dividend of 0.68p brought total dividend for the year to 5.18p (FY22: 4.52p). In Q124, net outflows of $2.5bn were recorded, mainly in passive hedging. Our estimates for FY24 are broadly unchanged since the passive hedging product is a lower fee earner. We have introduced our FY25 revenue and diluted EPS expectations of £52m and 6.97p respectively, conservatively factoring in no major new asset management wins in FY25.