22nd Nov 2019 09:53
(Alliance News) - Shares in currency manager Record PLC fell sharply Friday after interim profit and revenue fell despite ongoing strength in assets and client growth.
Shares in Windsor-based Record were 6.2% lower at 37.90 pence in London on Friday.
For the six months ended September, pretax profit narrowed 22% to GBP2.5 million from GBP3.2 million the year prior. This was after revenue fell 9.5% to GBP11.4 million from GBP12.6 million the year before.
"It's pleasing to announce growth in AUME to almost USD60 billion, including net inflows in the period of USD2 billion, and continued growth in client numbers to 70," Chief Executive Officer James Wood-Collins said. "This momentum reflects demand for our innovative currency management solutions."
Assets under management equivalents grew to USD59.9 billion from USD57.3 billion six months earlier.
"The period has seen positive investment performance across our Enhanced Passive Hedging and Dynamic Hedging products, as well as our Multi-Strategy product which now boasts a long-term risk-adjusted return in the top quartile of its peer group," Wood-Collins added. "The first half also saw continued innovation in our institutional offering including developing capabilities in adjacent asset classes."
Record proposed a 1.15 pence per share interim dividend, unchanged on the year prior.
"We continue to see an encouraging range of new business opportunities across a broad range of products and geographies, balanced against continued competition and fee pressure," Wood-Collins said.
"We remain confident of making further progress in the current financial year," Wood-Collins continued. "Over the longer term, the group will continue to benefit from our established industry position, investment expertise, and operational scalability."
By Ahren Lester; [email protected]
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