Record (REC)

Business description

Record is a specialist currency manager, providing currency hedging and return-seeking mandates to institutional clients. Services include passive and dynamic hedging and return-seeking currency strategies via funds or segregated accounts.

Stock data

Market cap.£85.6m
Last close43.00p
High / Low (52 weeks)52.5p / 36.2p
Stock market listingLN
Forecast net cash (£m)14
Forecast gearing ratio (%)N/A

Price performance

Relative *(3)(9.2)1.2

* % Relative to local index

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Company news

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 21.1 7.2 7.0 2.54 16.9 17.0
2017A 23.0 7.9 7.9 2.90 14.8 13.2
2018E 24.6 8.4 8.1 3.13 13.7 12.2
2019E 25.2 8.6 8.4 3.34 12.9 12.6

Last updated on 04/12/2017

Investment summary

Record is differentiated from conventional asset managers by its focus on currency markets where it benefits from its independent status and over 30 years of experience. Passive hedging services account for more than half of revenues but its offering is increasingly bespoke. This has pushed costs up but should help secure additional and retain existing mandates. Despite increased costs, H118 PBT still rose 6% y-o-y and, helped by the £10m tender offer, earnings per share were up 14%. The valuation remains below average in comparison with UK asset managers and the distribution policy is attractive for those seeking income.

Last updated on 13/12/2017

Industry outlook

Currency volatility has remained relatively subdued recently but macroeconomic and geopolitical uncertainties continue to generate concerns over possible adverse tail events, so conditions remain favourable for Record to market its services to potential clients. Work to broaden the product range and increase customisation should be helpful. Meanwhile, the longer-term track record for the currency for return strategies may allow this and the multi-product areas to increase AUME and revenue.

Last updated on 13/12/2017

Key management

Neil Record, Chairman
James Wood-Collins , CEO
Steve Cullen , CFO
Bob Noyen, Chief Investment Officer

Company address

Morgan House
Madeira Walk
United Kingdom
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