There were few surprises here for backers of institutional investment manager Record (REC) given it had previously announced the 3 per cent drop in its notional assets under management to $53.7bn (£36.7m). Net outflows of $2.3bn were primarily a result of the loss of $3bn from the 'currency for return' division, the majority of which came from a single mandate. The group also saw $1bn of net outflows from dynamic hedging strategies more than offset by $1.8bn net inflows into its passive hedging products. The latter now represents 82 per cent of its notional client assets.
Management and performance fees were broadly flat at £20.9m and £0.3m respectively (from £20.3m and £0.5m in 2015), leaving revenue for the year unchanged. However, a 10 per cent increase in company-wide fixed remuneration - in recognition of competitive pressures, according to chief executive James Wood-Collins - pushed operating profit down 9 per cent to £6.8m.
The good news came from the balance sheet which management now considers "significantly strong". Any excess cash generated in the current financial year is likely to be paid back to shareholders by way of special dividends, on top of the ordinary dividend which will stay flat at 1.65p.
Broker Cenkos Securities expects adjusted pre-tax profit of £5.8m, giving adjusted EPS of 2.1p in the year to March 2017, down from £6.9m and 2.5p in FY2016.
RECORD (REC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 24.5p | MARKET VALUE: | £54m | |
| TOUCH: | 23.3-25p | 12-MONTH HIGH: | 41p | LOW: 22p |
| DIVIDEND YIELD: | 6.7% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 15p | NET CASH: | £21.7m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 20.5 | 6.71 | 2.23 | 1.50 |
| 2013 | 18.6 | 6.08 | 1.98 | 1.50 |
| 2014 | 19.9 | 6.54 | 2.48 | 1.50 |
| 2015 | 21.1 | 7.68 | 2.66 | 1.65 |
| 2016 | 21.1 | 6.93 | 2.55 | 1.65 |
| % change | - | -10 | -4 | - |
Ex-div: 30 Jun Payment: 3 Aug | ||||
