Founded in 1983, Record PLC is a lesser known financial investment dealing with foreign currency.
Their main selling point is to help mitigate losses for clients from adverse currencies movements. It involves hedging.
Trading announcement
Today, saw Record increase its AUM to $58.2bn. There is also a mandated termination of $1.2bn. But a more effective assessment is to look back at the past five years.
Record PLC; - Five-Year Review
Table 1
(Click on the link to see the table)
P.S. Having trouble adjusting the size on some of the tables.
Let start with Record’s Asset under management. The currency hedger saw increasing amounts to cash inflows and increasing number of clients.
The continued risk of low interest rates still persistent.
Table 2
Revenue remains stagnant at £20m in 2016, lower than 2011 (£28m). Both operating and net profits are down. But margins remain high at 30%.
Table 3
The biggest asset item is cash. It accounts for 50% of all assets. That wasn’t the case back
in 2014/15 when it drops from £30m to £12m. Now, it holds £22m.
Table 4
(Click on the link to see the table)
Total current liabilities coming in at (£3m), the firm doesn’t have any long-term liabilities. This gave shareholders’ equity an extra boost.
Currently, standing at £37.7m.
Table 5
Cash flow earnings pattern is similar to net income. At the moment, it is generating £6.3m.
The reason why cash balance (see table 3) fell to £12m was the purchase of £15.5m in money market instruments.
For much a small business, they sure pay a good dividend. The downside is the payment varies from one year to the next.
Table 6
(Click on the link to see thetable)
No doubt, management pay is on the high-side, accounting for 10% of total revenue. Don’t be surprised because most financials look after their employees because they helped to win the firm clients. If the employees go they take their clients with them. And these businesses are employee focused rather than shareholders.
Table 7
Having said that, management holds most of the shares. Its founder Neil Record hold 71m shares out of 221m, a 30% ownership.…
