Record

LN: REC

£64.1m market cap

32.2p last close

Record is a specialist independent currency manager that 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.

Investment summary

After three quarters with outflows in assets under management equivalent (AUME), Record reported a modest inflow in its first quarter ($0.3bn) and the number of clients also ticked up. Competitive pressures remain a feature but the group is countering this with its focus on innovation and service enhancement. The breadth of new business opportunities is encouraging. A combination of sterling weakness and mix changes has led us to revise estimates, with EPS increases of 9% and 8% for this year and next.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 23.8 7.4 7.3 2.98 10.8 24.2
2019A 25.0 8.2 8.0 3.25 9.9 9.1
2020E 22.2 6.0 5.8 2.38 13.5 12.1
2021E 23.0 6.2 6.0 2.46 13.1 12.8
Last updated on 25/07/2019
Industry outlook

Prospectively, Record continues to focus on client service and product innovation to counter pressure on fee rates and this, together with the potential for further performance fee earnings (not included in our estimates), could provide the basis for positive earnings surprises. The group reports that it is generating good levels of interest across products and geographies.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net cash (£m) 12.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (5.2) 5.6 (22.5)
Relative* (6.2) 5.1 (20.4)
52-week high/low 42.0p/27.3p
*% relative to local index
Key management
Neil Record Chairman
James Wood-Collins CEO
Steve Cullen CFO
Bob Noyen Chief Investment Officer

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