14th Nov 2014 10:15
LONDON (Alliance News) - Record PLC Friday reported a rise in first-half pretax profit, but the currency manager said its results are yet to receive any boost from better conditions due to more divergence in central bank policy and a rise in volatility in currency markets.
In a statement, Record said it made a GBP3.6 million pretax profit in the six months ended September 30, compared with GBP3.1 million in the corresponding period last year, thanks to a rise in revenue to GBP10.1 million from GBP9.9 million and a fall in administrative expenses to GBP6.5 million from GBP6.8 million.
"The six month period has seen a continuation of the return to a more divergent monetary policy environment, and hence potentially a more "normal" currency market environment including wider interest rate differentials, and stronger trends," James Wood-Collins, chief executive, said in a statement.
However, the CEO said the improvement has yet to be reflected in the group's results, as it continues to seek to offset the impact of fee reductions undertaken part-way through the prior financial year, as well as the loss of a dynamic hedging mandate at the start of the year.
That said, Wood-Collins said the group is beginning to see signs of improvement because of market developments.
"As a consequence of these changes, the group is experiencing a level of new business enquiries which is more widely diversified across client geography and product type than for many years, and the group's diversified product suite is well placed to take advantage of any such opportunities," the CEO said.
Record paid an interim dividend of 0.75 pence and said it intends to maintain the full-year dividend total at 1.50p per share.
"In setting the dividend, the board will be mindful of achieving a level which it expects to be covered by earnings," Wood-Collins said.
Record shares were untraded on Friday. They last traded at 34.75 pence.
By Samuel Agini; [email protected]; @samuelagini
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