7th Nov 2013 13:20
LONDON (Alliance News) - Shares in Record PLC dropped 13% Thursday after the specialist currency manager said it is cutting fees to existing customers to match offers it is making to new ones.
Record said it expects the fee reductions to cause an on-going annualised hit of GBP1.8 million to pretax profits, due to an anticipated reduction in management fees they charge of around GBP2.6 million per annum.
"As anticipated, a higher level of new business enquiries and procurement processes has been accompanied by increased competitive activity. We have taken the decision to recognise this in fee arrangements with existing and long-standing clients, as well as with potential new clients," said Chief Executive James Wood-Collins in a statement. "In doing so we are hopeful that growth in volume will more than compensate for reduced revenue margins."
Shares in the specialist currency manager were trading down 13% at 29.56 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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