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Record plc provides latest six month update - highlights

Record plc provides latest six month update - highlights

Fri 23 Nov 2018 07:16 by ukcitymedia.co.uk about : trading updates - 1 Comments - 1295 words


Record plc, the specialist currency manager, today announces its unaudited results for the six months to 30 September 2018.

Financial headlines:

§ AUME1 broadly flat in USD terms at $61.8bn (31 March 2018: $62.2bn)

§ AUME increase of 7% in GBP terms at £47.4bn (31 March 2018: £44.3bn)

§ Client numbers increased to 66 (31 March 2018: 60)

§ Performance fees of £1.0m (six months to 30 September 2017: £nil)

§ Revenue up 3% to £12.6m (six months to 30 September 2017: £12.2m)

§ Operating margin of 32% (six months to 30 September 2017: 31%)

§ Profit before tax increased by 5% to £4.0m (six months to 30 September 2017: £3.8m)

§ Basic EPS of 1.63 pence (six months to 30 September 2017: 1.55 pence)

§ Strong financial position with shareholders' equity of £26.4m (30 September 2017: £25.8m)

§ Interim dividend of 1.15 pence per share will be paid on 28 December 2018 (interim dividend in respect of six months to 30 September 2017: 1.15 pence per share)

Key developments:

§ Encouraging range of new business opportunities across products and geographies.

§ Continued competition and fee pressure in Passive Hedging in particular.

§ Further innovation in new and existing products, as illustrated by the addition of fifth "Range-Trading" strand to Record's Multi-Strategy product, and the incorporation of ESG factors into currency management.

 

 

Commenting on the results, James Wood-Collins, Chief Executive Officer of Record plc, said:

 

"As financial markets and client demands evolve, opportunities continue to arise for new and enhanced services.  We are working hard alongside our clients to meet such demand.

"Competition and fee pressure in Passive Hedging in particular continue to put pressure on operating margins.  Our approach of investing in innovative solutions to meet client demand requires ongoing investment both in systems and people.

"Our diversified product suite and our ability to offer tailored solutions to clients and potential clients continues to develop.  This is exemplified by the addition of a fifth 'Range Trading' strand to our Multi-Strategy product, and starting the adoption of ESG factors into elements of our investment process.

"We were pleased to announce Record's first performance fees since March 2016, reinforcing progress made in product enhancement and diversification.

"We are focused on maintaining the highest levels of client service and innovation with the aim of taking full advantage of the opportunities arising, and of making further progress in the second half of the financial year."

 

1 As a currency manager, Record manages only the impact of foreign exchange and not the underlying assets, therefore its "assets under management" are notional rather than real.  To distinguish this from the AUM of conventional asset managers, Record uses the concept of assets under management equivalents "AUME" and by convention this is quoted in US dollars. A full definition of AUME is provided at the end of this document.

 

 

Analyst briefing

There will be a presentation for analysts at 9.30am on Friday 23 November 2018 at Cenkos plc offices: 6-8 Tokenhouse Yard, London, EC2R 7AS.  A copy of the presentation will be made available on the Group's website at www.recordcm.com.



These articles are summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.


 alan_keys_n13

24/11/18     1 words


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