15th Nov 2013 12:01
LONDON (Alliance News) - Currency manager Record PLC Friday said its half-year pretax profit rose by 15% after a similar rise in revenue, buoyed by an increase in the underlying assets for which it manages currency exposure.
Windsor-based Record, which makes money by designing and implementing risk-reducing currency hedges or return strategies for clients such as pension funds, charities and corporates, said it made a GBP3.1 million pretax profit for the six months ended June 30, compared with GBP2.7 million for the corresponding period last year.
The rise in pretax profit was driven by a 13% rise in revenue, which amounted to GBP9.9 million.
"Overall the group continues to experience a higher level of new business enquiries than at any period in the years since the banking crisis and global downturn, and all of the group's management and staff are working hard to meet these and to look after the interests of existing clients," Chief Executive James Wood-Collins said in a statement.
While Record does design and implement methods of managing currency, it doesn't actually manage the underlying assets it is hedging. In that respect, the company manages the impact of foreign exchange movements on those underlying assets. The company said the underlying assets for which it managed the currency impacts increased to USD37.7 billion, or GBP23.3 billion, for the first half, an increase of 8% in dollar terms and 2% in sterling terms.
The rise was primarily a result of further wins in both Dynamic and Passive Hedging products, driving net inflows of USD1.8 billion, which meant Record took in more fees for managing the impact of foreign exchange movements on those underlying assets.
Record declared a 0.75 pence interim dividend. It didn't pay an interim dividend this time last year. The currency manager said it plans on paying a further 0.75 pence at the full year in the form of a final dividend, as long as business conditions remain good. Last year's final dividend amounted to 1.50 pence.
Record shares were Friday quoted at 32.50 pence, up 15%.
By Samuel Agini; [email protected]; @samuelagini
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