28th Jun 2024 09:48
(Alliance News) - Record PLC reported its assets under management hit a record high, underscoring the firm's rapid growth in recent years.
The currency and asset manager reported assets under management jumped 17% on-year to USD102.2 billion at the end of March, from USD87.7 billion.
Annual revenue rose 1.6% to GBP45.4 million from GBP44.7 million. However, pretax profit fell 12% to GBP12.9 million from GBP14.6 million.
"The underlying financial performance of the group remains strong, with material growth in AUM, which rose to its highest ever level of USD102.2 billion, new fund launches and the repeat of last year's high level of performance fees of GBP5.8 million," Chief Executive Officer Jan Witte said.
Witte took over as CEO this year, replacing Leslie Hill.
Panmure Gordon analysts Rae Maile and Ross Luckman commented: "The appointment of Jan Witte as CEO has given the opportunity for the company to refresh its objectives and to refocus on key priorities. It does so after a period of rapid growth in the business: only five years ago AUM was USD59 billion compared with the USD102 billion at March 2024; management fees have increased from GBP23 million in 2020 to GBP39 million; the operating margin has been maintained despite growth; dividends per share have totalled over 20p over five years compared with a share price five years ago which was little more than 30p.
"This year will be a quieter year: growth is expected in many areas but headwinds from mix changes will impact revenue development; costs will be tightly managed. Thereafter we expect growth to be delivered from a business benefitting from structural drivers of demand for Record's refocused, differentiated product range."
Record maintained its final dividend at 2.45p per share, meaning its annual ordinary dividend totalled 4.60p per share, up 2.2% from 4.50p. In addition, it declared a special dividend of 0.60p per share, having "reviewed the current level of group capital against its ongoing requirements for regulatory and investment purposes". It means that the total proposed dividend for the year is 0.4% higher at 5.20p from 5.18p.
Record shares traded 1.2% lower at 64.00 pence each in London on Friday morning.
By Eric Cunha, Alliance News news editor
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