REG - Record PLC - Final Results
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RNS Number : 6665N Record PLC 20 June 2025
PRESS RELEASE
Record plc
20 June 2025
LEI number: 5493000VJ55ZTYGX4322
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2025
Good strategic progress with higher EPS and increased ordinary dividend
Record plc, the specialist currency and asset manager, today announces its
audited results for the year ended 31 March 2025 ("FY-25").
Financial highlights
AUM remained above $100 billion throughout the year with strong inflows and
new business wins partially offsetting the impact of isolated outflows. Lower
performance fees reduced total revenue, while costs were well controlled
during a period of leadership change and operational restructuring. Earnings
per share increased to 5.03 pence per share.
· AUM of $100.9 billion (FY-24: $102.1 billion), down 1%
· Total revenue of £41.6 million (FY-24: £45.4 million), down 8%
due to lower performance fees
· Management fees of £37.2 million (FY-24: £38.7 million), down
4%
· Operating costs of £30.8 million (FY- 24: £32.7 million) down
6%; flat excluding the impact of prior year IT write off
· Profit after tax down 2% to £9.1 million (FY-24: £9.3 million)
· Basic EPS increased 4% to 5.03 pence (FY-24: 4.84 pence)
· Final ordinary dividend of 2.5 pence per share (FY-24: 2.45
pence) increases full year ordinary dividend to 4.65 pence (FY24: 4.60 pence)
· Strong financial position with net assets of £29.1 million
(FY-24: £28.9 million)
Strategic and Operational highlights
· Introduction of 3 product pillars: Risk Management, Absolute
Return, Private Markets
· Launch of Infrastructure Equity fund with €1.1 billion of
commitments
· Announced plans to launch the world's first Sharia-compliant Deep
Tier Supply Chain Finance fund with a target of $1 billion; and non-binding
terms signed on $2.2 billion food security financing
· Appointment of Andreas Danzer as Group Chief Investment Officer
completes leadership transition
Outlook
· Deployment of new funds in Private Markets will drive growth in
revenue and EPS over the medium term
· Current year outlook highly dependent on the closing of large
complex deals currently in the pipeline but we anticipate FY26 revenue growing
low single digits and EPS flat
· We remain committed to paying a healthy ordinary dividend while
always maintaining our balance sheet strength
Commenting on the results, Jan Witte, CEO of Record plc, said:
"I am very proud of what we have accomplished in my first year as CEO of
Record. We have added new capabilities in our Private Markets pillar to
complement the core Risk Management and Absolute Return expertise which Record
consistently delivers year after year. Our unwavering commitment to delivering
a best-in-class, tailored client experience continues to be a key
differentiator - one that not only strengthens client relationships but also
attracts top-tier talent to our team."
Analyst presentation
There will be a presentation for analysts at 9am on Friday, 20 June 2025
held via a Teams call. Please contact investorrelations@recordfg.com
(mailto:investorrelations@recordfg.com) for further details. A copy of the
presentation will be made available on the Group's website
at www.recordcm.com (http://www.recordcm.com/) .
For further information:
Record plc investorrelations@recordfg.com
Jan Witte - Chief Executive Officer
Richard Heading - Chief Financial Officer
Panmure Liberum + 44 (0) 20 7886 2500
Corporate Broking: David Watkins
Corporate Advisory: Atholl Tweedie
h2Radnor +44 (0) 2038 971 830
Elliot Hance
Chairman's statement
In the last Annual Report, I commented on the management changes that had
recently taken place or were in hand. This financial year represents the first
year of what has been a generational shift in the executive team, now led by
Jan Witte, with the support of Richard Heading, who joined the Board as Chief
Financial Officer in July last year, and Kevin Ayles, Chief of Staff, who has
been with the Company since 2007, but who also joined the Board during the
course of the year. In addition, as anticipated in the previous Annual Report,
Othman Boukrami was elected as a Non-executive Director at the beginning of
July, succeeding Tim Edwards who stood down after the Annual General Meeting,
and whom I would like to thank for his years of service on the Board. We have,
as a result, witnessed a considerable change to the leadership of the Group in
the course of the past couple of years.
Whilst there have been no subsequent changes to the membership of the Board, I
would also like to note the appointment of Andreas Dänzer, who will join
Record as Group Chief Investment Officer ("Group CIO") later this year.
Andreas brings a wealth of relevant experience, having held a variety of
senior positions in the investment sector, most recently as CIO of Pension
Fund of Credit Suisse (Switzerland). Andreas has been known to Record for
several years, making him an excellent addition to the executive management
team.
As would be expected from new hands at the tiller, the first priority was to
review the Group's strategic direction, revisit its medium and long-term goals
and consider the human resources needed to achieve them. In that respect,
while the past financial year may not have delivered standout figures, it has
strengthened the foundations for future success.
For most of its history, Record's core activity has been the provision of
currency hedging services predominantly to major institutional investors
seeking cost efficient protection against adverse currency movements, whilst
benefiting from the majority of favourable trends. Through Record Currency
Management Limited, our key operating subsidiary, that activity continues to
be a core component of the Group and accounts for the majority of our total
Assets Under Management.
The Group's core offering continues to be currency hedging, however, this is
increasingly complemented by a broader range of growth opportunities and it is
now appropriate to view the Group as an alternative asset manager with a
strong emphasis on risk management.
Whilst on an initial impression our products cover a wide field, the common
denominator is Record's strength in developing bespoke, high-quality,
sophisticated solutions for institutional investors, which are often
benefiting from Record's knowledge and experience gained from its core
currency hedging mandates. In each case, Record is compensated by management
fees and, where applicable, performance fees. These offerings are typically
uncorrelated with traditional asset classes and are carefully structured to
deliver attractive risk-adjusted returns or long-term risk mitigation. By
expanding its product offering, the Group is well positioned to grow both
revenue and profit. For example, the Group recently announced that OWI-RAMS
GmbH, a joint venture of the Group, has signed non-binding term sheets with
Kore Potash plc, the potash development company, to provide the total funding
requirement for the Kola Potash Project and Dougou Extension Potash Project in
the Sintoukola Basin, located in the Republic of Congo.
Given that currency hedging continues to be at the core of the Group, the full
impact of the newer areas of focus will inevitably take time to materialise.
The Board is enthusiastic about the Group's pipeline ahead and looks forward
to overseeing the delivery of long-term value for stakeholders.
The Board is pleased to confirm that we continue to deliver strong value to
our investors through a solid and consistent dividend. Looking ahead, we
remain confident in our strategy and are optimistic about the opportunities
for growth and improved performance in the coming year.
The current economic and geopolitical environment is probably as uncertain as
it has been since the end of the Cold War. We have seen, over the last few
months, movement in the valuation of mainstream assets that few would have
imagined even a year ago. This has been accompanied by non-trivial currency
movements and increasing speculation as to whether the USD's role as the
world's reserve currency will be sustained. In that context, Record's currency
hedging activities may come more into focus than they have for many years and
the uncorrelated nature of the returns in other parts of the product portfolio
give rise to optimism about their potential for growth in the medium term,
even in turbulent markets. What is more difficult to predict is the timing,
but the new financial year has started very encouragingly.
David Morrison
Chairman
Chief Executive Officer's statement
The close of this financial year also concludes my first full year as Group
CEO, after almost 13 years at Record. While my previous responsibilities
included clients, investments and the regulated businesses, this year my role
expanded to oversee public markets and direct engagement with our
shareholders.
In addition to the Group CEO transition, Richard Heading joined us as Group
CFO and Kevin Ayles joined the Board as Chief of Staff. I am grateful for
their support and commitment and am proud to lead a strongly united and
effective executive team.
As we reflect on the past year as another step towards the achievement of our
goals, Record's unique selling point remains the same:
We deliver best-in-class solutions for large institutional investors
Our objectives remain fundamentally unchanged, and we continue to pursue:
• Organic Growth;
• Quality of Earnings; and
• Operational Excellence.
I am pleased to provide progress updates on each of them.
Organic Growth
We are comfortable with the strategic direction we have chosen, which is
validated by a strengthening of the Group's existing business (operationally
and financially) and an expansion of our opportunity set. Given the long lead
times that some of our mandates require, business growth continues to be
variable. Although there have been no material opportunities concluding in the
last financial year, we are, however, looking at a pipeline which is much
stronger than this time last year, with several large projects very close to
completion.
Looking forward, we now characterise the businesses by three pillars, namely:
• Risk Management;
• Absolute Return; and
• Private Markets.
These pillars play an important part in contributing to the stability of the
business and the growth opportunities we see.
As announced earlier this year, Andreas Dänzer will join us as Group CIO this
summer. We are looking forward to having him as Group CIO; his appointment
recognised an evolution of the role, and will bring together all parts of the
Group's investment landscape under one leadership. Andreas has a strong
background in all relevant investment areas and is very familiar with the
Record Group and its clients.
Quality of Earnings
We are consistent in our pursuit of high-quality earnings and fees structures.
While a lot of our mandates are liquid, we have started to add an increasing
number of smaller accounts, diversifying our customer base by applying our
relationship management skills developed with our long-term larger clients. We
are also evolving as a business with high expertise in the complexities of
liquid markets into one that also has a firm footing in private markets. This
has the obvious advantage of expanding our fee range into an area with higher
revenues over longer lock-in periods, which is an attractive addition and
helps us reduce reliance on any one specific fee model.
One of last year's milestones was the launch of our Infrastructure Equity
fund, with an initial commitment of €1.1 billion, this is an evergreen
structure with a 15-year break clause and a nice example of our capabilities
when entering a new field. We are excited about the team's potential to expand
this first step into a large growth area of business for the Group.
Operational Excellence
Our new IT leadership (originally announced in spring 2024) has made great
strides in modernising our operational infrastructure, confirming our strategy
to create an in-house team focusing on our exact requirements. Our IT
requirements will, in lockstep with client requirements, continue to evolve,
and there is always ongoing development in this space, but we are pleased to
now have a team that moves at the required pace.
While closely monitoring headcount numbers and costs, which we aim to
efficiently manage with the help of technology, we continue to increase our
internal operational expertise across different asset classes.
This aligns with client demands, which increasingly often touch more than one
area, and our business offering which now spans well beyond currency services.
We now have our own internal Fixed Income, Infrastructure Equity, Private
Equity and Private Credit teams, who in turn routinely offer segregated
accounts, fund structures, securitisation vehicles and special purpose
vehicles to our clients.
Looking ahead
Amid rising global volatility and the continued growth of private markets -
driven by bank disintermediation and heightened regulation - we believe the
Group is well positioned for the years ahead. We are also beginning to see
meaningful synergies across our product lines, as more of our Risk Management
clients are turning to us for complementary offerings such as Credit and
Infrastructure. This diversification now spans pension funds, foundations and,
increasingly, other asset managers.
We remain optimistic about the future, both near and long-term. Our unwavering
commitment to delivering a best-in-class, tailored client experience continues
to be a key differentiator - one that not only strengthens client
relationships but also attracts top-tier talent to our highly regarded team.
Jan Witte
Chief Executive Officer
Chief Financial Officer's review
Overview
AUM remained above $100 billion throughout the year as Record demonstrated the
resilience of its unique specialist asset management business model.
Revenue declined in FY-25 due to lower performance fees and the impact of one
large client loss and another client change of strategy, but new client wins
for our Hedging for Asset Manager offering, in particular, added to the
strength of the client base.
In a year of management and operational transition we have controlled costs
while making important investments for the future, particularly in technology
and operational infrastructure, while our new office in Paddington is not only
a first-class workspace, but also a cost-effective, long-term solution.
Operating costs were down 6%. Excluding the impact of the £1.9 million
impairment of internally developed software recognised in FY-24, operating
costs were flat year on year.
The tax rate was low this year as we recognised a tax credit in respect of
inception to date losses in our German subsidiary. This reflects our
confidence that that entity will soon start to deliver profitable growth.
We have continued to invest in Record Asset Management, where our joint
shareholding with the management team allows us to share the upfront costs. As
a result, earnings per share increased from 4.84 pence per share to 5.03 pence
per share.
Our balance sheet remains strong. Net assets of £29.1 million, includes
assets managed as cash of
£13.3 million, which represents a healthy surplus over our regulatory capital
requirement. We view balance sheet strength as important to both clients and
investors and it will remain a priority.
The recommended final dividend of 2.50 pence per share will bring the total
ordinary dividend for the year to 4.65 pence per share, up 1% on last year,
which represents 92% of earnings per share.
AUM development
At the end of FY-24, Assets Under Management increased to over $100 billion
for the first time, and has remained above that milestone throughout FY-25. At
the year end, AUM was down 1% at $100.9 billion (FY-24: $102.2 billion). Net
flows were negative due to some isolated client losses, but partially offset
by foreign exchange movements.
AUM is presented in US dollars but the underlying assets are denominated in
multiple underlying currencies and we earn management fees in those underlying
currencies. The foreign exchange movements were driven by strengthening of the
Swiss Franc against the US dollar and the impact on our revenue in GBP terms
was small.
During the year we restructured our products into 3 pillars: Risk Management,
Absolute Return and Private Markets. AUM and Revenue are presented in this
report in those pillars and a reconciliation of the new to old presentation is
provided in Additional information.
AUM composition and movement by product
Equity Equity
& other & other
31 Mar market FX & 31 Mar market FX & 31 Mar
2023 Net flows impacts scaling adj. 2024 Net flows impacts scaling adj. 2025
$bn $bn $bn $bn $bn $bn $bn $bn $bn
Passive Hedging 54.5 7.4 3.7 0.4 66.0 (2.3) 0.1 1.3 65.1
Dynamic Hedging 14.7 0.3 1.5 0.0 16.5 (0.8) 0.3 0.0 16.0
Hedging for Asset Managers 9.3 1.3 (0.1) (0.1) 10.4 3.6 0.2 0.1 14.3
Risk Management 78.5 9.0 5.1 0.3 92.9 0.5 0.6 1.4 95.4
FX Alpha 2.8 0.0 1.6 0.1 4.5 (1.3) (1.0) 0.8 3.0
Custom Opportunities 5.2 (2.0) 0.1 0.4 3.7 (2.3) 0.0 0.0 1.4
Cash 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1
Absolute Return 8.1 (2.0) 1.7 0.5 8.3 (3.6) (1.0) 0.8 4.5
EM Local Debt 1.1 (0.1) 0.0 0.0 1.0 0.0 0.0 0.0 1.0
Private Markets 1.1 (0.1) 0.0 0.0 1.0 0.0 0.0 0.0 1.0
Total AUM 87.7 6.9 6.8 0.8 102.2 (3.1) (0.4) 2.2 100.9
The composition of AUM by underlying currency is as follows:
Swiss franc 57%
US dollar 26%
Euro 7%
Sterling 7%
Australian dollar 2%
Other 1%
Risk Management
AUM in our core Risk Management products increased by 3% to $95.4 billion
(FY-24: $92.9 billion).
Passive Hedging AUM was down slightly following rapid growth in FY-24. Net
outflows reflected a client loss during the year and some lowering of hedge
ratios across several clients. This was partially offset by FX gains on assets
which for our Passive Hedging clients are predominantly denominated in Swiss
francs.
AUM in Dynamic Hedging is more heavily weighted to US dollars. As the US
dollar weakened we saw Dynamic Hedging clients slightly reduce their hedge
ratios, although this was partly offset by increases in the value of the
underlying assets.
Hedging for Asset Managers is a rapidly growing service and we saw strong
inflows during the year. AUM inflows in Hedging for Asset Managers have two
components: we expect to grow by winning new clients, but also to grow as
existing clients launch new funds. In FY-25, new client wins accounted for
$0.8 billion and new fund launches for existing clients were $2.8 billion.
Absolute Return
AUM for Absolute Return products tends to be more volatile as clients are more
likely to move in and out of Absolute Return strategies. The wind up of a
client mandate at the end of the period reduced closing AUM in FX Alpha by
$1.3 billion, while the discontinuation of a tactical interest rate portfolio
in the third quarter reduced AUM in Custom Opportunities by $2.3 billion.
Private Markets
In EM Local Debt, AUM was unchanged at $1 billion. This is the AUM in our
Emerging Markets Sustainable Finance fund launched in FY-22.
While not yet reported as AUM, we also have commitments of €1.1 billion to
our Infrastructure Equity fund which was launched during the year.
Income Statement
FY-25 FY-24 Change
£m £m %
Revenue 41.6 45.4 (8%)
Cost of Sales (0.5) (0.1) 476%
Gross Profit 41.1 45.3 (9%)
Operating costs (30.8) (32.7) (6%)
Other income 0.4 - nm
Operating profit 10.7 12.6 (15%)
Net finance income 0.2 0.3 (9%)
Profit before tax 10.9 12.9 (15%)
Tax (1.8) (3.6) (50%)
Profit after tax 9.1 9.3 (2%)
Total comprehensive income for the year attributable to:
Equity holders of the Group 9.7 9.3 5%
NCI (0.6) - nm
EPS 5.03p 4.84p 4%
Revenue
Total revenue of £41.6 million (FY-24: £45.4 million) was down 8%.
Management fees of £37.2 million (FY-24: £38.7 million) were down 4%
following the restructure of a large client mandate in FY-24 and the
discontinuation of a tactical interest rate swap portfolio in the first half
of FY-25.
Performance fees of £3.2 million, while once again an important component of
total revenue, were down against an exceptionally strong performance in FY-24.
Other services income, which comprises primarily distribution fees earned in
our asset management business, nearly doubled as activity increased in Record
Asset Management, our German asset management subsidiary.
Fy-25 Fy-24 Change
£m £m %
Management fees
Passive Hedging 11.5 9.7 18%
Dynamic Hedging 13.7 13.7 0%
Hedging for Asset Managers 3.5 2.9 24%
Risk Management 28.7 26.3 9%
FX Alpha 1.6 1.3 30%
Custom Opportunities 1.9 6.3 (70%)
Absolute Return 3.5 7.6 (53%)
EM Local Debt 5.0 4.8 4%
Private Markets 5.0 4.8 4%
Total management fees 37.2 38.7 (4%)
Performance fees 3.2 5.8 (46%)
Other services income 1.2 0.8 42%
Total revenue 41.6 45.3 (8%)
Management fees increased on all products except Custom Opportunities where,
as previously noted, we experienced lower AUM in the period.
Risk Management - management fees
Management fees from Risk Management products increased by 9% to £28.7
million (FY-24: £26.3 million).
Passive Hedging management fees increased by 18% to £11.5 million (FY-24:
£9.7 million) reflecting primarily the restructure of a large client mandate
from an active Custom Opportunities strategy to a Passive Hedging strategy at
the end of last year.
Management fees from Dynamic Hedging were £13.7 million (FY-24: £13.7
million) flat year-on-year, while Hedging for Asset Managers made good new
business wins during the year, growing management fee revenue by 24% as a
result.
Absolute Return - management fees
Management fees from FX Alpha increased by 30% to £1.6 million (FY-24: £1.3
million). The reduction in FX Alpha AUM occurred late in the year and
therefore the impact on revenue was limited. The full impact of that AUM
reduction will be felt in FY-26.
Custom Opportunities revenue was down considerably due to a client mandate
restructure into Passive Hedging and the discontinuation of a tactical
interest rate swap portfolio.
Private Markets - management fees
EM Local Debt, which comprises our Emerging Markets Sustainable Finance funds,
generates high and consistent revenue from a stable AUM base. AUM was
unchanged in the period and revenue increased by £0.2 million to £5.0
million (FY-24: £4.8 million).
Performance fees
Performance fees of £3.2 million, while once again an important component of
total revenue, were down against an exceptionally strong performance in FY-24.
Performance fees in this year were all earned on Enhanced Passive Hedging
mandates. While performance fees on FX Alpha products are somewhat dependent
on market conditions, on Enhanced Passive Hedging mandates they can be earned
more consistently on a systematic basis and this year increased from £2.9
million to £3.2 million.
Operating Costs
FY-25 FY-24 Change
£m £m %
Staff costs 15.9 16.7 (5%)
Technology 4.2 6.5 (35%)
Professional fees 3.1 2.4 32%
Occupancy 1.3 1.0 36%
Depreciation and amortisation 0.8 0.7 5%
Travel and marketing 0.8 1.0 (8%)
Operating costs (excl. bonus) 26.2 28.3 (7%)
Bonus 4.6 4.4 4%
Operating costs 30.8 32.7 (6%)
Headcount (average) 99 96 3%
Operating costs of £30.8 million (FY-24: £32.7 million) were down 6%.
Excluding the impact of the one-off impairment of internally developed
software recognised at the end of FY-24, total operating costs were flat. This
represents good progress in restructuring our cost base and aligning
investment to our strategic priorities.
Following a comprehensive review of technology, tech development has been
brought in-house and tech development teams now work closely with operational
teams to deliver technology improvements in line with operational priorities.
This is already delivering better and faster outcomes at lower cost, which has
enabled us to reduce staff costs by 5% to £15.9 million (FY-24: £16.7
million). This has been achieved while at the same time increasing salaries in
line with inflation and adding additional headcount in key areas such as
Record Asset Management.
Technology cost represents the cost of third party systems, consultants and
market data, and included in the prior year figure is the £1.9 million IT
write-off. Our new technology leadership team has made a good start on
rationalising and reducing those costs, and excluding the impact of the IT
write off in the prior year, these costs are down 9%.
We have increased spending on professional fees, which includes legal fees,
primarily in relation to the set up and launch of new structured solutions
that we expect to launch soon.
Occupancy costs are higher due to the temporary double-running of office space
during the transition to our new office. Going forward, our overall occupancy
costs will be lower.
Other income and expense arises from the change in carrying value of
investments held on our balance sheet, as well as FX gains or losses. The
carrying value of investments increased by £0.3 million during the year,
which accounts for the majority of the income.
The Board retains discretion to operate a bonus pool in the range of 25%-35%
of pre-bonus operating profit. For FY-25 the Board approved a bonus pool of
30.8% of pre-bonus operating profit, giving total bonus cost of £4.6 million
(FY-24: £4.4 million). The increase over the prior year reflects the Board's
decision in FY-24 to fund the bonus pool at the bottom end of the range.
Further information on bonuses can be found in the Remuneration report.
Operating profit and underlying profit margin
Statutory operating profit of £10.7 million (FY-24: £12.6 million) was down
15%, driven by lower performance fees On an underlying basis, excluding the
impact of the impairment of internally developed software, operating profit
was down 27%. Operating margin decreased from 27.8% to 25.6%.
Profit after tax and earnings per share
Profit after tax of £9.1 million (FY-24: £9.3 million) was down 2%.
The tax charge for the year was £1.8 million (FY-24: £3.7 million). The
reduction in the tax charge reflects the impact of a tax credit recognised in
the period in respect of cumulative tax losses in Record Asset Management GmbH
("RAM"), our German subsidiary, reflecting our confidence in the future
revenues and profits of RAM.
On 1 April, the Group transferred a 59% shareholding in RAM to the RAM
management team. As a result, a portion of profit after tax is attributable to
non-controlling interests. Since RAM incurred losses during the period, the
impact is to increase profit after tax attributable to Record plc shareholders
to £9.7 million (FY-24: £9.3 million).
Earnings per share has increased by 4% to 5.03 pence (FY-24: 4.84 pence).
Financial stability and capital management
Maintaining a strong balance sheet is a priority for Record and we believe
this is important to investors and clients alike.
At 31 March 2025, net assets were £29.1 million (FY-24: £29.0 million) which
is £20.5 million in excess of our minimum regulatory capital requirement of
£8.6 million which we are required to maintain by the FCA in the UK and BaFin
in Germany.
Included within net assets is £13.3 million of assets managed as cash (FY-24:
£17.5 million). The reduction in cash and cash equivalents compared to last
year end is due to the fit-out costs of the new Paddington office and the
impact of maintaining the prior year dividend while delivering lower profits
in the current year. Nevertheless, we remain in a very strong cash position.
Dividends
An interim ordinary dividend of 2.15 pence per share (FY-24: 2.15 pence) was
paid to shareholders on 20 December 2024, equivalent to £4.1 million.
As disclosed in the Chairman's statement, the Board is recommending a final
ordinary dividend of 2.50 pence per share (FY-24: 2.45 pence), equivalent to
approximately £4.9 million, taking the overall ordinary dividend for the
financial year to 4.65 pence per share (FY-24: 4.60 pence), representing 92%
of total earnings per share of 5.03 pence.
Outlook
We have started FY-26 with a well-positioned pipeline. Over the medium term,
we expect the deployment of new funds in the Private Markets space in
particular to drive revenue and EPS growth.
The outlook for the current year is highly dependent on the timing of closing
the large and complex deals currently in the pipeline, but we are anticipating
low single digit revenue growth and flat EPS year on year.
Recognising the importance of the dividend to investors, and the uncertainty
of timing of new revenue growth, we remain committed to paying a healthy
ordinary dividend while always balancing that with the aim of maintaining a
strong balance sheet.
Richard Heading
Chief Financial Officer
Preliminary announcement statement
The financial information, which comprises the consolidated statement of
comprehensive income, consolidated statement of financial position,
consolidated statement of changes in equity, consolidated statement of cash
flows, company statement of financial position, company statement of changes
in equity, company statement of cash flows and related notes, does not
constitute full accounts within the meaning of s435 (1) and (2) of the
Companies Act 2006. The auditor has reported on the Group's statutory accounts
for each of the years FY-24 and FY-25, which did not contain any statement
under s498 of the Companies Act 2006 and are unqualified. The statutory
accounts for FY-24 have been delivered to the Registrar of Companies and the
statutory accounts for FY-25 will be filed with the Registrar in due course.
The financial statements are presented in thousands of UK pounds, rounded to
the nearest £'000.
Cautionary statement
This Annual Report contains certain forward‑looking statements with respect
to the financial condition, results, operations and business of Record. These
statements involve risk and uncertainty because they relate to events and
depend upon circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ materially
from those expressed or implied in this Annual Report. Nothing in this Annual
Report should be construed as a profit forecast.
Directors' responsibility statement pursuant to DTR4
The Directors confirm to the best of their knowledge:
· the financial statements have been prepared in accordance with
the applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit and loss of the Group and
Company; and
· the Annual Report includes a fair review of the development and
performance of the business and the financial position of the Group and
Company, together with a description of the principal risks and uncertainties
that they face.
Consolidated statement of comprehensive income
Year ended 31 March 2025
2025 2024
Note £'000 £'000
Revenue 4 41,615 45,378
Cost of sales (472) (82)
Gross profit 41,143 45,296
Administrative expenses 5 (30,845) (30,746)
Loss on share of joint venture (4) -
Other income/(expense) 5 364 (15)
Operating profit prior to impairment of intangible assets 10,658 14,535
Impairment of intangible assets 11 - (1,937)
Operating profit 10,658 12,598
Finance income 446 394
Finance expense (162) (81)
Profit before tax 10,942 12,911
Taxation 7 (1,837) (3,658)
Profit after tax 9,105 9,253
Foreign exchange gains on translation of foreign operations 55 13
Other comprehensive income that may be reclassified subsequently
to profit and loss
Total comprehensive income for the year net of tax 9,160 9,266
Total comprehensive income for the year attributable to
Equity holders of the parent 9,750 9,271
Non-controlling interest 15 (590) (5)
9,160 9,266
Earnings per share for profit attributable to the equity holders of the
parent during the year
Basic earnings per share (pence per share) 8 5.03 4.84
Diluted earnings per share (pence per share) 8 4.94 4.78
The notes are an integral part of these consolidated financial statements.
Consolidated statement of financial position
As at 31 March 2025
Restated(1)
2025 2024
Note £'000 £'000
Non‑current assets
Intangible assets 11 358 11
Right‑of‑use assets 12 7,007 174
Property, plant and equipment 13 2,147 193
Investments 14 4,123 4,949
Deferred tax assets 17 1,365 168
Total non‑current assets 15,000 5,495
Current assets
Corporation tax assets 18 289 -
Trade and other receivables 18 13,729 13,022
Derivative financial assets 19 84 63
Money market instruments(1) 20 1,500 9,530
Cash and cash equivalents(1) 20 11,798 7,955
Total current assets 27,400 30,570
Total assets 42,400 36,065
Current liabilities
Trade and other payables 21 (5,739) (4,930)
Corporation tax liabilities 21 (51) (1,865)
Provisions 22 (186) (122)
Lease liabilities 12 (263) (106)
Derivative financial liabilities 19 - (9)
Total current liabilities (6,239) (7,032)
Non-current liabilities
Provisions 22 (250) -
Lease liabilities 12 (6,842) (79)
Total non-current liabilities (7,092) (79)
Total net assets 29,069 28,954
Equity
Issued share capital 23 50 50
Share premium account 1,809 1,809
Capital redemption reserve 26 26
Foreign currency translation reserve 44 13
Retained earnings 27,131 27,051
Equity attributable to the equity holders of the parent 29,060 28,949
Non-controlling interests 9 5
Total equity 29,069 28,954
1. See note 32 for details of the presentational adjustment resulting
in the restatement of prior year amounts.
Approved by the Board on 19 June 2025 and signed on its behalf by:
David Morrison Richard Heading
Chairman Chief Financial Officer
Company registered number: 1927640
The notes are an integral part of these consolidated financial statements.
Consolidated statement of changes in equity
Year ended 31 March 2025
Equity
Foreign attributable
Called‑up Share Capital currency to equity Non-
share premium redemption translation Retained holders of controlling Total
capital account reserve reserve earnings the parent interest equity
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 April 2024 50 1,809 26 13 27,051 28,949 5 28,954
Profit and total comprehensive income for the year - - - 31 9,719 9,750 (590) 9,160
Non-controlling interest acquired in subsidiaries - - - - 571 571 (552) 19
Share of additional equity reserve contribution - - - - (1,146) (1,146) 1,146 -
Dividends paid 9 - - - - (10,049) (10,049) - (10,049)
Own shares acquired by EBT - - - - (760) (760) - (760)
Release of shares held by EBT - - - - 1,332 1,332 - 1,332
Tax on share-based payments - - - - (15) (15) - (15)
Other share-based payment reserve movements - - - - 428 428 - 428
Transactions with shareholders - - - - (9,639) (9,639) 594 (9,045)
As at 31 March 2025 50 1,809 26 44 27,131 29,060 9 29,069
Year ended 31 March 2024
Equity
Foreign attributable
Called‑up Share Capital currency to equity Non-
share premium redemption translation Retained holders of controlling Total
capital account reserve reserve earnings the parent interest equity
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 April 2023 50 1,809 26 - 26,406 28,291 - 28,291
Profit and total comprehensive income for the year - - - 13 9,258 9,271 (5) 9,266
Non-controlling interest acquired in subsidiaries - - - - - - 10 10
Dividends paid 9 - - - - (10,113) (10,113) - (10,113)
Own shares acquired by EBT - - - - (1,266) (1,266) - (1,266)
Release of shares held by EBT - - - - 2,584 2,584 - 2,584
Tax on share-based payments - - - - (86) (86) - (86)
Other share-based payment reserve movements - - - - 268 268 - 268
Transactions with shareholders - - - - (8,613) (8,613) 10 (8,603)
As at 31 March 2024 50 1,809 26 13 27,051 28,949 5 28,954
The notes are an integral part of these consolidated financial statements.
Consolidated statement of cash flows
As at 31 March 2025
Restated(1)
2025 2024
Note £'000 £'000
Net cash inflow from operating activities 27 7,346 13,055
Cash flows from investing activities
Purchase of intangible assets 11 (365) (789)
Purchase of property, plant and equipment 13 (2,118) (29)
Purchase of investments 14 (60) (1,080)
Sale of investment in subsidiary 14 4 -
Redemption of bonds 14 - 753
Redemption of other investments 14 1,120 1,144
Purchase of money market instruments(1) (4,922) (5,950)
Disposal of money market instruments(1) 12,952 2,396
Interest received 479 360
Net cash inflow/(outflow) from investing activities 7,090 (3,195)
Cash flows from financing activities
Lease principal payments 12 (217) (288)
Lease interest payments 12 (15) (33)
Proceeds from share issue to NCI 24 -
Purchase of own shares 33 (325) -
Dividends paid to equity shareholders 9 (10,049) (10,113)
Net cash outflow from financing activities (10,582) (10,434)
Net increase/(decrease) in cash and cash equivalents in the year 3,854 (574)
Exchange gains (11) 8
Cash and cash equivalents at the beginning of the year 7,955 8,521
Cash and cash equivalents at the end of the year 11,798 7,955
Closing cash and cash equivalents consist of:
Cash 6,739 4,954
Cash equivalents 5,059 3,001
Cash and cash equivalents 20 11,798 7,955
1. See note 32 and 33 for details of the presentational adjustment
resulting in the restatement of prior year amounts.
The notes are an integral part of these consolidated financial statements.
Company statement of financial position
As at 31 March 2025
2025 2024
Note £'000 £'000
Non‑current assets
Right‑of‑use assets 12 6,936 68
Property, plant and equipment 1,943 70
Investments 14 12,620 10,843
Total non‑current assets 21,499 10,981
Current assets
Corporation tax 201 195
Trade and other receivables 18 6,670 711
Cash and cash equivalents 20 90 214
Total current assets 6,961 1,120
Total assets 28,460 12,101
Current liabilities
Trade and other payables 21 (11,432) (7,176)
Lease liabilities 12 (226) (71)
Provisions 22 (61) (122)
Total current liabilities (11,719) (7,369)
Non-current liabilities
Lease liabilities 12 (6,804) -
Deferred tax liabilities (434) (124)
Provisions 22 (250) -
Total non-current liabilities (7,488) (124)
Total net assets 9,253 4,608
Equity
Issued share capital 23 50 50
Share premium account 1,809 1,809
Capital redemption reserve 26 26
Retained earnings 7,368 2,723
Total equity 9,253 4,608
The Company's total comprehensive income for the year (which is principally
derived from intra-group dividends) was £13,879,895 (2024: £6,809,523).
Approved by the Board on 19 June 2025 and signed on its behalf by:
David Morrison Richard Heading
Chairman Chief Financial Officer
Company registered number: 1927640
The notes are an integral part of these consolidated financial statements.
Company statement of changes in equity
Year ended 31 March 2025
Share Capital Total
Called‑up premium redemption Retained shareholders'
share capital account reserve earnings equity
Note £'000 £'000 £'000 £'000 £'000
As at 1 April 2024 50 1,809 26 2,723 4,608
Profit and total comprehensive income for the year - - - 13,880 13,880
Dividends paid 9 - - - (10,049) (10,049)
Share option reserve movement - - - 814 814
Transactions with shareholders - - - (9,235) (9,235)
As at 31 March 2025 50 1,809 26 7,368 9,253
Year ended 31 March 2024
Share Capital Total
Called‑up premium redemption Retained shareholders'
share capital account reserve earnings equity
Note £'000 £'000 £'000 £'000 £'000
As at 1 April 2023 50 1,809 26 4,882 6,767
Profit and total comprehensive income for the year - - - 6,810 6,810
Dividends paid 9 - - - (10,113) (10,113)
Share option reserve movement - - - 1,144 1,144
Transactions with shareholders - - - (8,969) (8,969)
As at 31 March 2024 50 1,809 26 2,723 4,608
The notes are an integral part of these consolidated financial statements.
Company statement of cash flows
Year ended 31 March 2025
2025 2024
Note £'000 £'000
Net cash inflow from operating activities 27 1,711 1,555
Cash flows from investing activities
Dividends received 10,000 7,700
Purchase of property, plant and equipment (1,246) -
Investment in equity reserve of subsidiary (1,422) -
Sale of investment in subsidiary 4 -
Purchase of investments (60) (13)
Redemption of investments 1,120 1,144
Interest received - 8
Net cash inflow from investing activities 8,396 8,839
Cash flows from financing activities
Lease principal payments 12 (173) (253)
Lease interest payments 12 (11) (27)
Purchase of own shares - -
Dividends paid to equity shareholders 9 (10,049) (10,113)
Net cash outflow from financing activities (10,233) (10,393)
Net increase in cash and cash equivalents in the year (126) 1
Exchange losses 2 -
Cash and cash equivalents at the beginning of the year 214 213
Cash and cash equivalents at the end of the year 90 214
Closing cash and cash equivalents consist of:
Cash 90 214
Cash equivalents - -
Cash and cash equivalents 20 90 214
The notes are an integral part of these consolidated financial statements.
Notes to the financial statements for the year ended 31 March 2025
1. Accounting policies
In order to provide more clarity to the notes to the financial statements,
accounting policy descriptions appear at the beginning of the note to which
they relate.
The material accounting policies adopted in the preparation of these
consolidated financial statements are set out in the notes below. These
policies have been consistently applied to all periods presented unless
otherwise stated.
1.1 Basis of preparation
The Group financial statements have been prepared in accordance with UK
adopted international accounting standards and the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
The financial statements have been prepared on a going concern basis.
The financial statements have been prepared on a historical cost basis,
modified to include fair valuation of derivative financial instruments.
Investments are measured at fair value through profit or loss.
The accounting policies have been applied consistently to all periods
presented in these financial statements and by all Group entities, unless
otherwise stated. The financial statements of subsidiary undertakings are
coterminous with those of Record plc, referred to as the "Company".
1.2 Changes to international accounting standards
There have been no new or amended standards adopted in the financial year
beginning 1 April 2024 which have a material impact on the Group or any
company within the Group.
The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective at the year-end date.
The Group is currently assessing the impact on the financial statements of
IFRS 18 and the amendments to IFRS 9 regarding the classification and
measurement of financial instruments.
1.3 Basis of consolidation
The consolidated financial information contained within the financial
statements incorporates financial statements of the Company, its subsidiaries
and share in the results of its joint ventures drawn up to 31 March 2025.
Subsidiaries are entities controlled by the Company and are included from the
date that control commences until the date that control ceases. Control is
achieved where the Company is exposed to, or has rights over, variable returns
from its involvement with the entity and it has the power to affect those
returns.
The Record plc Employee Benefit Trust ("EBT") has been established for the
purpose of satisfying certain share-based awards. As the Group has control
over this special purpose entity, the trust is fully consolidated within the
financial statements. The movements in the EBT are disclosed in the statement
of changes in equity as own shares acquired and released by the EBT. This
includes net settlements, through which employees have the option to sell back
shares to cover the exercise price and tax liabilities arising as a result of
exercising share awards. As the amounts are netted off, there are no cash
movements.
Joint ventures are entities in which the Group has an investment where it has
contractually agreed to share control of the business and where the major
decisions require the unanimous consent of the joint partners. The results, as
well as the assets and liabilities of joint ventures, are incorporated in the
consolidated financial statements using the equity method of accounting. The
Group's share of post-tax profits or losses is recognised in the consolidated
statement of comprehensive income.
All intra‑group transactions, balances, income, expenses and dividends are
eliminated on consolidation.
The Company financial statements have also been prepared in accordance with UK
adopted international accounting standards and have taken advantage of the
exemption under the Companies Act 2006 s408(1) not to present its individual
statement of comprehensive income and related notes that form part of the
financial statements. The Company and its subsidiaries are collectively
referred to as the "Group"; the Group's total comprehensive income for the
year includes a profit of £13,879,895 attributable to the Company (FY-24:
£6,809,523). The Company's principal activity is that of a holding company.
1.4 Going concern
The Directors are satisfied that the Company and the Group have adequate
resources with which to continue to operate for the foreseeable future. In
arriving at this conclusion, the Directors have considered various assessments
including capital and liquidity positions, the current economic and
geopolitical environment and the market in which the Group operates, and its
stakeholders. These assessments show that the Group should be able to operate
at adequate levels of both liquidity and capital for at least twelve months
from the date of signing this report.
Consequently, the Directors have reasonable expectation that the Group has
adequate financial resources to continue operations for at least twelve months
from the date of signing the report, and therefore have continued to adopt the
going concern basis in preparing the financial statements.
1.5 Foreign currencies
The financial statements are presented in sterling (£), which is the
functional currency of the parent company. Foreign currency transactions are
translated into the functional currency of the parent company using prevailing
exchange rates which are updated on a monthly basis. Foreign exchange gains
and losses resulting from the settlement of such transactions and from the
remeasurement of monetary items at year‑end exchange rates are recognised in
the statement of comprehensive income under "other income or expense".
On consolidation, the results of foreign operations are translated into
sterling at rates approximating to those when the transactions took place. The
assets and liabilities of foreign operations are translated at the period-end
spot rate. Exchange differences arising on translating the opening net assets
at opening rate and the results of overseas operations at monthly average rate
are recognised in other comprehensive income, and accumulated in the foreign
currency translation reserve.
1.6 Financial instruments
Financial assets and financial liabilities are recognised when the Group
becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash
flows from the financial assets expire, or when the financial asset and all
substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
1.7 Impairment of assets
The Group assesses whether there is any indication that any of its assets have
been impaired at least annually. If such an indication exists, the asset's
recoverable amount is estimated and compared to its carrying value.
An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. Impairment losses are recognised in
profit or loss.
1.8 Segmental reporting
Operating segments are identified on the basis of internal reports about
components of the Group that are regularly reviewed by the Group's Chief
Operating Decision Maker ("CODM") in order to allocate resources to the
segments and to assess their performance. The CODM is considered to be the
Board of Directors.
As a result of the diversification and growth of the Group's operations into
asset management, the Group identified two reportable segments for the
purposes of revenue reporting for FY-24 and FY-25: Currency Management and
Asset Management.
For FY-26 onwards, the segmental information presented to the Group's CODM
will transition to a more granular split by product nature: Risk Management,
Absolute Return and Private Markets.
2. Critical accounting estimates and judgements
The preparation of the financial statements in accordance with IFRS requires
management to make accounting estimates and judgements that affect the
application of the Group's accounting policies and reported amounts.
The estimates and associated assumptions are based on historical experience
and various other factors including expectations of future events that are
believed to be reasonable under the circumstances, the results of which form
the basis of making judgements about carrying values of assets and liabilities
that are not readily apparent from other sources. As a consequence, actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The key areas involving estimates and judgements have been set out below, and
detailed further within the respective notes:
Area Note Related estimates
Leases 12 Discount rate
Provisions 22 Consideration required to settle future obligations
Share-based payments 17, 24 Fair value of share options and related deferred tax
Fair value of investments 26 Valuation methodology and inputs
Area Note Related judgement
Basis of consolidation 14, 29 Control, interests in unconsolidated structured entities
Fair value of investments 26 Input level allocation
3. Segmental analysis
For FY-25, the Board and management team of the Group have continued to
organise and report on the performance of the business by Currency Management
and Asset Management segments. The Currency Management segment comprises
bespoke solutions to clients including Passive Hedging, Dynamic Hedging,
Hedging for Asset Managers, and FX Alpha products. The Asset Management
segment principally comprises investment management services for products
including EM Debt and Custom Opportunities.
For FY-26 onwards, the operating segmental information presented to the
Group's CODM will transition to a more granular split by product nature: Risk
Management, Absolute Return and Private Markets.
3.1 Operating segments
Operating profit per segment is not presented, as such information is not
presented on a regular basis to the Group's CODM. Therefore, for FY-25, these
are not considered to be operating segments. However, revenue per segment is
reviewed by the CODM. Currency Management revenue totalled £34.1 million for
the period (FY-24: £33.9 million) and Asset Management revenue totalled £7.5
million for the period (FY-24: £11.5 million). Note 4 provides further detail
on this.
3.2 Segment assets and liabilities
Segment assets and liabilities are not presented, as such information is not
presented on a regular basis to the Group's CODM.
4. Revenue
Revenue comprises the fair value of the consideration received or receivable
for the provision of Currency Management and Asset Management services. Our
revenues typically arise from charging management fees, performance fees and
other currency services income and are accounted for in accordance with IFRS
15 - "Revenue from Contracts with Customers".
Management fees and other services income are recorded on a monthly basis as
the service occurs; there are no other performance obligations (excluding
standard duty of care requirements). Management fees are calculated as an
agreed percentage of the Assets Under Management ("AUM") denominated in the
client's chosen base currency. The percentage varies depending on the nature
of services and the level of AUM. Management fees are typically invoiced to
the customer quarterly with receivables recognised for unpaid invoices. Fees
are recognised on a monthly basis, based on the agreed fee rate and AUM over
the period.
The Group is entitled to earn performance fees from some clients where the
performance of the clients' mandates exceeds defined benchmarks over a set
time period, and are recognised when the fee amount can be estimated reliably
and it is highly probable that it will not be subject to significant reversal.
Performance fee revenues are not considered to be highly probable until the
end of a contractual performance period and therefore are not recognised until
they crystallise, at which time they are payable by the client and cannot be
clawed back. There are no other performance obligations or services provided
which suggest these have been earned either before or after crystallisation
date.
4.1 Revenue by product type
2025 2024
Currency Asset Currency Asset
Management Management Total Management Management Total
£'000 £'000 £'000 £'000 £'000 £'000
Passive Hedging 11,485 - 11,485 9,720 - 9,720
Dynamic Hedging 13,685 - 13,685 13,719 - 13,719
Hedging for Asset Managers 3,569 - 3,569 2,886 - 2,886
FX Alpha 1,626 - 1,626 1,250 - 1,250
EM Debt - 4,977 4,977 - 4,793 4,793
Custom Opportunities - 1,904 1,904 - 6,327 6,327
Management fees 30,365 6,881 37,246 27,575 11,120 38,695
Passive Hedging 3,175 - 3,175 2,898 - 2,898
FX Alpha - - - 2,942 - 2,942
Performance fees 3,175 - 3,175 5,840 - 5,840
Other services income 595 599 1,194 439 404 843
Total revenue 34,135 7,480 41,615 33,854 11,524 45,378
Management fees are recognised over time and are invoiced typically on a
quarterly basis, although Record may invoice fees monthly for some of its
larger clients. Performance fees are recognised when they crystallise and can
be invoiced on a quarterly, six-monthly or annual basis, as agreed with our
clients.
Other services income includes Currency Management fees from signal hedging
and fiduciary execution, as well as Asset Management distribution fees.
4.2 Revenue by geographical analysis
All revenue received during the period was for services provided by Group
companies situated in the UK, Germany and Switzerland. The following
geographical analysis of revenue is based on the destination i.e. the location
of the client to whom the services are provided. Other relates to a number of
regions that are individually immaterial.
2025 2024
Revenue by geographical region £'000 £'000
Management and performance fee income
UK 2,331 2,593
US 15,288 15,652
Switzerland 13,893 15,281
Europe (excluding UK and Switzerland) 8,722 8,049
Other 1,381 3,803
Total revenue 41,615 45,378
4.3 Major clients
During the year ended 31 March 2025, three Currency Management clients
individually accounted for more than 10% of the Group's revenue. The three
largest clients generated revenues of £6.9 million, £5.0 million and £4.3
million in the year (FY‑24: two clients generated revenues of more than 10%
totalling £6.7 million and £4.8 million in the year).
5. Operating profit
Operating profit for the year is stated after charging/(crediting):
2025 2024
£'000 £'000
Administrative expenses
Staff costs 19,335 19,404
Other staff-related costs 1,224 1,778
IT and technology 4,236 4,584
Auditor's remuneration
Fees payable to the Group's auditor for the audit of the Company's annual 186 188
accounts
Fees payable to the Group's auditor for the audit of subsidiary undertakings 266 268
Audit-related assurance services required by law or regulation 10 9
Other non-audit services 18 16
Other professional fees 2,638 1,888
Occupancy 1,343 989
Travel and marketing 831 899
Impairment of intangible assets - 1,937
Loss on share of joint venture 4 -
Other income or expense
Gain on forward FX contracts held to hedge cash flow (179) (252)
Other exchange losses 120 360
Investment gains (305) (93)
Of the above auditor's remuneration, audit-related services for the year
totalled £452,500 (FY-24: £455,500).
6. Staff costs
The average number of employees, including Directors, employed by the Group
during the year was:
2025 2024
Corporate 7 6
Client relationships 11 13
Investment research 20 20
Operations 40 34
Risk management 6 6
Support 15 17
Annual average 99 96
The aggregate costs of the above employees, including Directors, were as
follows:
2025 2024
£'000 £'000
Wages and salaries 14,653 14,792
Social security costs 1,923 2,007
Pension costs 873 817
Other employment benefit costs 1,886 1,788
Aggregate staff costs 19,335 19,404
Other employment benefit costs include share‑based payments, share option
costs, and costs relating to the Record plc Share Incentive Plan.
There are no Company staff costs.
7. Taxation - Group
Current tax is the tax currently payable based on taxable profit for the year.
Current income tax assets and/or liabilities comprise those obligations to, or
claims from, fiscal authorities relating to the current or prior reporting
periods that are unpaid at the reporting date. Current tax is payable on
taxable profit, which differs from profit or loss in the financial statements.
Calculation of current tax is based on tax rates and tax laws that have been
enacted or substantively enacted by the end of the reporting period.
2025 2024
£'000 £'000
UK current year charge 3,238 3,723
Overseas taxes (78) 66
Prior year adjustments (67) 48
Current tax charge 3,093 3,837
Origination and reversal of temporary differences (1,054) (151)
Prior year adjustment (202) (28)
Total deferred tax (1,256) (179)
Tax on profit on ordinary activities 1,837 3,658
The total charge for the year can be reconciled to the accounting profit as
follows:
2025 2024
£'000 £'000
Profit before taxation 10,942 12,911
Taxation at the standard rate of tax in the UK of 25% (FY-24: 25%) 2,736 3,228
Tax effects of:
Other disallowable expenses and non‑taxable income 236 106
Deferred tax asset not recognised on start-up entities (734) 199
Different tax rates on subsidiary undertakings (131) 104
Prior year adjustment (270) 21
Total tax expense 1,837 3,658
The tax expense comprises:
Current tax expense 3,094 3,837
Deferred tax credit (1,257) (179)
Total tax expense 1,837 3,658
The standard rate of UK corporation tax for the year is 25% (FY-24: 25%). A
full corporation tax computation is prepared at the year end. The actual
charge as a percentage of the profit before tax may differ from the underlying
tax rate. Differences typically arise as a result of capital allowances
differing from depreciation charged, and certain types of expenditure not
being deductible for tax purposes. Other differences may also arise.
The tax charge for the year ended 31 March 2025 was 17% of profit before tax
(FY-24: 28%). The decrease is primarily as a result of the temporary
differences for the year ended 31 March 2025 which include the impact of net
deferred tax credit of £1,416k (FY-24: net credit of £179k).
8. Earnings per share
Basic earnings per share is calculated by dividing the profit after tax for
the financial year attributable to equity holders of the parent by the
weighted average number of ordinary shares in issue during the year.
Diluted earnings per share is calculated as for the basic earnings per share
with a further adjustment to the weighted average number of ordinary shares to
reflect the effects of all potential dilution.
There is no difference between the profit for the financial year attributable
to equity holders of the parent used in the basic and diluted earnings per
share calculations.
2025 2024
Weighted average number of shares used in calculation of basic earnings per 193,200,901 191,509,539
share
Effect of potential dilutive ordinary shares - share options 3,410,882 2,174,866
Weighted average number of shares used in calculation of diluted earnings per 196,611,783 193,684,405
share
pence pence
Basic earnings per share 5.03 4.84
Diluted earnings per share 4.94 4.78
The potential dilutive shares relate to the share options, JSOP and LTIP
awards granted in respect of the Group's Share Scheme (see note 24). There
were share options, JSOP and LTIP awards in place at the beginning of the year
over 15,832,891 shares. During the year 1,043,750 share options were
exercised, 570,625 JSOP awards vested and a further 1,723,740 share options,
JSOP awards and LTIP awards lapsed or were forfeited. The Group granted
1,640,000 share options during the year. Of the 14,134,776 share options,
JSOP and LTIP awards in place at the end of the period, 11,732,199 have a
dilutive impact at the year end.
9. Dividends
Ordinary, special and interim dividends are recognised in the financial
statements when approved by shareholders.
The dividends paid by the Group during the year ended 31 March 2025 totalled
£10,049,183 (5.20 pence per share), which comprised a final dividend in
respect of the year ended 31 March 2024 of £4,723,850 (2.45 pence per share),
a special dividend in respect of the year ended 31 March 2024 of £1,156,861
(0.60 pence per share) and an interim dividend for the year ended 31 March
2025 of £4,168,472 (2.15 pence per share).
The dividends paid by the Group during the year ended 31 March 2024 totalled
£10,113,174 (5.28 pence per share), which comprised a final dividend in
respect of the year ended 31 March 2023 of £4,678,947 (2.45 pence per share),
a special dividend in respect of the year ended 31 March 2023 of £1,298,647
(0.68 pence per share) and an interim dividend for the year ended 31 March
2024 of £4,135,580 (2.15 pence per share).
For the year ended 31 March 2025, a final ordinary dividend of 2.50 pence per
share has been proposed, totalling approximately £4.9 million.
10. Retirement benefit obligations
The Group operates defined contribution pension plans for the benefit of
employees. The Group makes contributions to independently administered plans;
such contributions being recognised as an expense when they fall due. The
assets of the schemes are held separately from those of the Group in
independently administered funds.
The Group is not exposed to the particular risks associated with the operation
of defined benefit plans and has no legal or constructive obligation to make
any further payments to the plans other than the contributions due.
The pension cost charge disclosed in note 6 to the accounts represents
contributions payable by the Group to the funds.
11. Intangible assets
The Group's intangible assets comprise both purchased software and the
capitalised costs of software development. Internal software development
costs, which represent attributable employee costs, are capitalised if they
meet the IAS 38.57 criteria. The amount recognised for an internally
generated intangible asset is the sum of qualifying expenditure incurred from
the date when the asset first meets the recognition criteria.
Intangible assets are shown at historical cost less accumulated amortisation
and impairment losses. Amortisation is charged from the date an intangible
asset is available for use, on a straight‑line basis, over the estimated
useful life of the intangible asset. Amortisation is included within
administration expenses in the statement of comprehensive income.
Useful lives are as follows:
· Software: 2 - 5 years.
Amortisation periods and methods are reviewed annually and adjusted if
appropriate.
The carrying amounts of intangible assets can be analysed as follows:
2025 2024
Software Total Software Total
£'000 £'000 £'000 £'000
Cost
At 1 April 1,021 1,021 2,320 2,320
Additions 365 365 789 789
Impairment - - (2,088) (2,088)
At 31 March 1,386 1,386 1,021 1,021
Amortisation
At 1 April 1,010 1,010 930 930
Charge for the year 18 18 232 232
Impairment - - (152) (152)
At 31 March 1,028 1,028 1,010 1,010
Net book value
At 31 March 358 358 11 11
At 1 April 11 11 1,390 1,390
The annual contractual commitment for the maintenance and support of the above
software is £229,197 (FY-24: £231,068). All amortisation charges are
included within administrative expenses.
12. Leases
The Group's lease arrangements consist of business premises property leases.
Rental contracts are typically made for fixed periods between two to ten years
and may have extension and/or modification options. Lease terms are negotiated
on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants, but leased
assets cannot be used as security for borrowing purposes.
At the commencement date of a lease, a lease liability and a corresponding
right-of-use ("ROU") asset are recognised.
The lease liability is initially measured at the present value of expected
future lease payments discounted at the interest rate implicit in the lease.
If that rate cannot be determined, the Group's incremental borrowing rate is
used, being the rate that the Group would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions. As the Group has no borrowings,
it has estimated the incremental borrowing rate based on interest rate data
available in the market, adjusted to reflect Record's creditworthiness, the
leased asset in question and the terms and conditions of the lease.
Subsequently the lease liability decreases by the lease payments made, offset
by interest on the liability, and may be remeasured to reflect any
reassessment of expected payments or to reflect any lease modifications.
The right-of-use asset is initially measured at the amount of the initial
lease liability, adjusted for any lease incentives received, any lease
payments made at or before the commencement date, any initial direct costs,
and the costs of decommissioning the asset and any restoration work to return
the asset to the condition required under the terms of the lease.
Subsequently the right-of-use asset is valued using the cost model. The asset
is depreciated on a straight-line basis over the shorter of the asset's useful
life and expected term of the lease, adjusted for any remeasurement of the
lease liability, and is shown net of the accumulated depreciation and any
impairment provisions.
Each lease payment is allocated between the liability and finance cost. The
finance cost is charged to profit or loss over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
The leases relevant to the twelve months ended 31 March 2025, and the
comparative period, are as described below:
On 2 October 2024, the Group signed a ten-year lease for our new Head Office
in London and, following a 12-month rent-free period, the rent payment
commitment will be £977,574 per annum. The lease has been capitalised and
discounted at a rate of 5%. This lease has a 5-year break clause. Total lease
payments of £4,887,870 are potentially avoidable were the Group to exercise
this break clause at the earliest opportunity.
On 11 February 2022, the Group signed a lease on premises at Second Floor,
Morgan House, Madeira Walk, Windsor, at an annual commitment of £267,900,
expiring on 1 September 2026. On 19 February 2024, the Group enacted the right
to early termination of this lease which resulted in a modification of lease
term, which expired on 2 September 2024. On 28 August 2024, Record plc
signed the new lease agreement with a non-cancellable 15-month period for
Morgan House, a commencement date of 3 September 2024 and at an annual
commitment of £160,000. The new lease has been capitalised and discounted at
a rate of 5%. At 31 March 2025, it was considered reasonably certain that the
Group will exercise the break clause, therefore the carrying amount of lease
liabilities for this lease has been reduced by the amounts of payments that
will be avoided by exercising the break clause.
On 1 June 2017, the Group signed a five-year lease on premises in Zürich, at
an annual commitment of CHF 49,680. On 12 August 2021, the Group extended
the lease to 1 June 2027, at an annual commitment of CHF 49,680.
Net book value of right‑of‑use assets
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
Net book value at 1 April 174 68 1,011 871
Additions 7,383 7,383 - -
Valuation adjustment on lease modification (19) (19) (559) (559)
Depreciation (531) (496) (278) (244)
Net book value at 31 March 7,007 6,936 174 68
Lease liabilities
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
Current 263 226 106 71
Non-current 6,842 6,804 79 -
Total lease liabilities 7,105 7,030 185 71
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
At 1 April 185 71 979 834
Additions 6,963 6,963 - -
Interest expense 184 180 33 27
Lease payments - principal (217) (173) (288) (253)
Lease payments - interest (15) (11) (33) (27)
Valuation adjustment on lease modification - - (510) (510)
Foreign exchange movements 5 - 4 -
At 31 March 7,105 7,030 185 71
Lease payments
At 31 March, the undiscounted operating lease payments on an annual basis are
as follows:
Maturity of lease liability at 31 March:
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
Within 1 year 608 569 111 72
1-3 years 1,995 1,955 78 -
After 3 years 6,354 6,354 - -
Total lease liability before discounting 8,957 8,878 189 72
The remainder of the movement in the lease liability relates to non-cash
movements. The lease term is determined as the non-cancellable period of a
lease, together with periods covered by an option to extend the lease if the
Group considers that exercise of the option is reasonably certain.
13. Property, plant and equipment - Group
All property, plant and equipment assets are stated at cost less accumulated
depreciation. Depreciation of property, plant and equipment is provided to
write off the cost, less residual value, on a straight‑line basis over the
estimated useful life as follows:
· Leasehold improvements: period from lease commencement to the
earlier of the lease termination date and the next rent review date;
· Computer equipment: 2 - 5 years; and
· Fixtures and fittings: 4 - 6 years.
Residual values, remaining useful economic lives and depreciation methods are
reviewed annually and adjusted if appropriate. Gains or losses on disposal are
included in profit or loss.
The Group's property, plant and equipment comprise leasehold improvements,
computer equipment and fixtures and fittings. The carrying amount can be
analysed as follows:
2025 2024
Leasehold Computer Fixtures Leasehold Computer Fixtures
improvements equipment and fittings Total improvements equipment and fittings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 April 776 1,050 233 2,059 776 1,023 231 2,030
Additions 1,364 448 352 2,164 - 27 2 29
Disposals - - - - - - - -
At 31 March 2,140 1,498 585 4,223 776 1,050 233 2,059
Depreciation
At 1 April 706 931 229 1,866 677 752 224 1,653
Charge for the year 81 117 12 210 29 179 5 213
Disposals - - - - - - - -
At 31 March 787 1,048 241 2,076 706 931 229 1,866
Net book value
At 31 March 1,353 450 344 2,147 70 119 4 193
At 1 April 70 119 4 193 99 271 7 377
The Company's property, plant and equipment comprise leasehold improvements,
computer equipment and fixtures and fittings. The carrying amount can be
analysed as follows:
2025 2024
Leasehold Computer Fixtures Leasehold Computer Fixtures
improvements equipment and fittings Total improvements equipment and fittings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 April 116 - - 116 116 - - 116
Additions 1,364 256 345 1,965 - - - -
Disposals - - - - - - - -
At 31 March 1,480 256 345 2,081 116 - - 116
Depreciation - -
At 1 April 46 - - 46 17 - - 17
Charge for the year 80 6 6 92 29 - - 29
Disposals - - - - - - - -
At 31 March 126 6 6 138 46 - - 46
Net book value - -
At 31 March 1,354 250 339 1,943 70 - - 70
At 1 April 70 - - 70 99 - - 99
The Group's and Company's tangible non-current assets are located
predominantly in the UK.
14. Investments
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
Investment in subsidiaries at cost - 54 - 59
Capitalised investment in respect of share-based payments - 4,918 - 4,078
Investment in equity reserve of subsidiary - 3,535 - 1,625
Investment in funds 2,586 2,576 3,412 3,544
Other investments 1,537 1,537 1,537 1,537
Total direct investments 4,123 12,620 4,949 10,843
Other than investment in subsidiaries and capitalised investment in respect of
share-based payments, the Company also holds an investment in the equity
reserve of Record Asset Management GmbH, as well as direct investments in
private funds and share capital of start-up companies in the digital sector.
Details on the fair value measurement of investments can be found in note 26.
Company
Investments in subsidiaries
Investments in subsidiaries are shown at cost less impairment losses. The
capitalised investment in respect of share‑based payments offered by
subsidiaries is equal to the cumulative fair value of the amounts payable to
employees recognised as an expense by the subsidiary.
2025 2024
£'000 £'000
Investment in subsidiaries (at cost)
Record Currency Management Limited 10 10
Record Group Services Limited 10 10
Record Currency Management (US) Inc. - -
Record Currency Management (Switzerland) GmbH 16 16
Record Asset Management GmbH 18 23
Total investment in subsidiaries (at cost) 54 59
Capitalised investment in respect of share‑based payments
Record Group Services Limited 4,327 3,495
Record Currency Management (US) Inc. 88 88
Record Currency Management (Switzerland) GmbH 503 495
Total capitalised investment in respect of share‑based payments 4,918 4,078
Total investment in subsidiaries 4,972 4,137
Particulars of subsidiary undertakings
Information about the subsidiaries held by the Group at 31 March is shown
below. The companies are unlisted.
2025 2024
Effective Effective
Group Group
ownership ownership
(%) (%)
Name of entity Nature of business
Record Currency Management Limited Currency management services (FCA, SEC and CFTC registered) 100 100
Record Group Services Limited Management services to other Group undertakings 100 100
Record Currency Management (US) Inc. US advisory and service company (SEC and CFTC registered) 100 100
Record Currency Management (Switzerland) GmbH Swiss advisory and service company 100 100
Record Asset Management GmbH German advisory and service company 41 100
RAM Strategies GmbH German consultant and distribution agent 41 100
RAMS Swiss AG Swiss advisory company 41 -
During the period, a resolution for a change in the ownership structure of
Record Asset Management GmbH ("RAM") took effect from 1 April 2024. Through a
combination of issuing new ordinary shares in RAM to the RAM management team
and the sale by Record plc of 10% of its shareholding to Jan Witte, Record plc
CEO, Record plc reduced its shareholding in RAM from 100% to 41%. However,
Record plc has retained the voting rights of the 10% sold to Jan Witte, and as
a result retains control with 51% of the voting rights. RAM therefore
continues to be consolidated as a subsidiary, and has a 59% non-controlling
interest, the effects of which have been disclosed accordingly in the
statement of comprehensive income and statement of financial position. This is
a change in ownership transaction that has not resulted in a loss of control.
The Group's interest in the equity capital of subsidiaries is through the
holding of ordinary share capital in all cases. All investments in
subsidiaries are directly held, with the exception of RAM Strategies GmbH and
RAM Swiss AG, which are held indirectly through the Company's 41% holding in
Record Asset Management GmbH.
Record Currency Management (US) Inc. is incorporated in Delaware (registered
office: Corporation Service Company, 251 Little Falls Drive, Wilmington, DE
19808), Record Currency Management (Switzerland) GmbH is incorporated in
Zürich (registered office: Münsterhof 14, 8001 Zürich) Record Asset
Management GmbH and RAM Strategies GmbH are incorporated in Germany
(registered office: Bockenheimer Anlage 46, 60322 Frankfurt am Main), and RAMS
Swiss AG is incorporated in Switzerland (registered office: Baarerstrasse 52,
6300 Zug). All other subsidiaries are incorporated in the UK and have the
registered office at Morgan House, Madeira Walk, Windsor, Berkshire SL4 1EP.
Capitalised investment in respect of share-based payments
The accounting treatment of capitalised investment in respect of share-based
payments can be found in note 24.
Group
Entities are consolidated on a line-by-line basis where the Group has
determined that a controlling interest exists through an investment holding in
the entity, in accordance with IFRS 10 - "Consolidated Financial Statements".
Otherwise, investments in entities are measured at fair value through profit
or loss.
15. Non-controlling interests
The Group initially recognises any non-controlling interest ("NCI") in the
acquiree as the NCI's proportionate share of the acquiree's net assets.
The total comprehensive income of non-wholly owned subsidiaries is attributed
to equity owners of the parent and to the non‑controlling interests in
proportion to their relative ownership interests.
The Record Asset Management GmbH group is a 41% owned group of subsidiaries of
the Company that has material non‑controlling interests. Summarised
financial information in relation to the Record Asset Management GmbH group
is presented below, together with amounts attributable to NCI:
2025
Year ended 31 March £'000
Revenue 473
Cost of sales (88)
Gross profit 385
Administrative expenses (1,811)
Loss on share of joint venture (2)
Other expense (21)
Operating loss (1,449)
Finance income 9
Loss before tax (1,440)
Taxation 826
Loss after tax allocated to NCI (614)
Other comprehensive income allocated to NCI 24
Total comprehensive expense allocated to NCI (590)
Cash flows from operating activities 70
Cash flows used in investing activities (42)
Cash flows from financing activities 1,166
Net cash inflows 1,194
2025
£'000
As at 31 March
Assets 1,111
Liabilities (1,102)
Accumulated non-controlling interests 9
16. Interests in joint ventures
The financial and operating activities of the Group's joint ventures are
jointly controlled by the participating shareholders. The participating
shareholders have rights to the net assets of the joint ventures through their
equity shareholdings. Unless otherwise stated, the Company's principal joint
ventures all have share capital consisting solely of ordinary shares.
The country of incorporation of all joint ventures is also their principal
place of operation.
Particulars of joint venture undertakings
Information about the joint ventures held by the Group at 31 March is shown
below.
2025 2024
Effective Effective
Group Group
ownership ownership
Name of entity Nature of business (%) (%)
Dair Management UK Limited (previously Dair Record Limited) UK advisory and service company 5 50.1
OWI-RAMS GmbH German advisory company 20.5 51
In April 2024, Record plc entered into an agreement to reduce the Group's
shareholding held in Dair Management UK Limited from 50.1% to 5%. This
transaction completed in June 2024. As a result, from 1 July 2024, this
investment is no longer recognised as a joint venture.
There was also a change in the OWI-RAMS GmbH shareholding agreement effective
1 August 2024, such that the previously 51% owned subsidiary is now a 50%
jointly owned joint venture. OWI-RAMS GmbH is held indirectly through the
Company's 41% subsidiary holding in Record Asset Management GmbH.
OWI-RAMS GmbH is incorporated in Germany (registered office: Bockenheimer
Anlage 46, 60322 Frankfurt am Main).
As at 31 March 2025, the Group holds no material joint ventures; therefore,
additional summarised financial information for the above joint ventures has
not been presented.
17. Deferred taxation - Group
Deferred tax is the future tax consequences of temporary differences between
the carrying amounts and tax bases of assets and liabilities shown on the
statement of financial position. The amount of deferred tax provided is based
on the expected manner of recovery or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively enacted at
the statement of financial position date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised. The carrying amounts of the deferred tax assets are reviewed at each
statement of financial position date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all
or part of the asset to be recovered.
A deferred tax liability is generally recognised for all taxable temporary
differences. Deferred tax arising on the initial recognition of an asset or
liability, other than a business combination, that at the time of the
transaction affects neither the accounting profit or loss nor the taxable
profit or loss, is not recognised.
2025 2024
£'000 £'000
Opening balance deferred tax asset 168 134
Current year movement 1,053 151
Prior year adjustment 203 28
Deferred tax in equity (59) (145)
Closing balance deferred tax asset 1,365 168
The deferred tax asset consists of the tax effect of temporary differences in
respect of:
2025 2024
£'000 £'000
Deferred tax allowance on unvested share options and LTIP awards 285 145
Deferred tax allowance on losses carried forward 1,400 -
Excess of taxation allowances over depreciation on fixed assets (293) 23
Deferred tax on unrealised gains/losses on investments (27) -
Total 1,365 168
At the year end, there were share options and LTIP awards not exercised with
an intrinsic value for tax purposes of £1,008,346 (FY-24: £629,489). On
exercise, the Group will be entitled to a corporation tax deduction in respect
of the difference between the exercise price and the strike price. The Group
has losses in relation to overseas entities totalling £4,482k (FY-24:
£2,436k) which are available to carry forward against future profits. German
tax losses can be carried forward indefinitely. Based on forecasts for the RAM
Group, the tax loss will be fully utilised by 2028. A deferred tax asset has
been recognised in respect of these losses for the first time in the current
year, as there is now certainty as to when these losses will start to be
reversed. Deferred tax has been calculated based on the future tax rate of 25%
for UK Group entities and 31% for German Group entities differences from 1
April 2024. It is subject to change if tax rates change in future years.
18. Trade and other receivables
Trade and other receivables are recognised initially at transaction price and
subsequently measured at amortised cost using the effective interest method,
less loss allowances. The amortised cost of trade and other receivables is
stated at original invoice value, as the interest that would be recognised
from discounting future cash receipts over the short credit period is
not considered to be material.
2025 2024
Group Company Group Company
Trade and other receivables £'000 £'000 £'000 £'000
Trade receivables 8,885 - 9,149 610
Accrued income 1,738 908 1,505 -
Other receivables 2,094 5,653 1,125 41
Prepayments 1,012 109 1,243 60
Total 13,729 6,670 13,022 711
All amounts are short term. The Directors consider that the carrying amount of
trade and other receivables approximates to their fair value. The Group has
not renegotiated the terms of any receivables in the year ended 31 March 2025.
The Group's trade receivables are generally short term and do not contain
significant financing components.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses ("ECLs") for trade receivables at an amount equal to lifetime ECLs. The
ECLs on trade receivables are calculated based on actual historic credit loss
experience over the preceding 25 years on the total balance of non-credit
impaired trade receivables, adjusted to incorporate any relevant
forward-looking information. The Group has therefore concluded that the ECLs
for trade receivables are reasonable. The Group does not expect to incur any
credit losses and has not recognised any ECLs in the current year (FY-24:
£nil).
Accrued income relates to accrued management and performance fees earned but
not yet invoiced. Other receivables for the Company includes a £5,300,000
subsidiary dividend declared and approved, due to be paid to the Company in
July 2025.
2025 2024
Group Company Group Company
Current tax £'000 £'000 £'000 £'000
Corporation tax asset 289 201 - 195
19. Derivative financial assets and liabilities
Derivative financial instruments are initially recognised at cost on the date
on which the contract is first entered into, unless the fair value at
acquisition is different to cost, in which case fair value is recognised.
Subsequently they are measured at fair value with gains and losses recognised
in profit or loss. Transaction costs are immediately recognised in profit or
loss. The fair values of derivative financial instruments are determined by
reference to active market transactions.
The Group uses forward foreign exchange contracts to reduce the risk
associated with assets denominated in foreign currencies. The instruments are
recognised at fair value. The fair value of the contracts is calculated using
the market rates prevailing at the period end date. The net gain or loss on
instruments is included within other income or expense.
2025 2024
Derivative financial assets £'000 £'000
Forward foreign exchange contracts held to hedge non-sterling-based assets 26 19
Forward foreign exchange contracts held for trading 58 44
Total 84 63
2025 2024
Derivative financial liabilities £'000 £'000
Forward foreign exchange contracts held to hedge non-sterling-based assets - (9)
Total - (9)
Derivative financial instruments held to hedge non-sterling-based assets
At 31 March 2025, there were outstanding contracts with a principal value of
£6,779,569 (31 March 2024: £7,243,998) for the sale of foreign currencies in
the normal course of business. The fair value of the contracts is calculated
using the market forward contract rates prevailing at 31 March 2025. The Group
does not apply hedge accounting.
The net gain or loss on forward foreign exchange contracts held to hedge
non-sterling-based assets is as follows:
2025 2024
Derivative financial instruments held to hedge non-sterling-based assets £'000 £'000
Net gain on forward foreign exchange contracts at fair value through profit or (199) (252)
loss
20. Cash management
The Group's cash management strategy employs a variety of treasury management
instruments including cash, money market deposits and treasury bills. Whilst
the Group manages and considers all of these instruments as cash, which are
subject to its own internal cash management process, not all of these
instruments are classified as cash or cash equivalents under IFRS.
IFRS defines cash and cash equivalents as cash in hand, on demand and
collateral deposits held with banks, and other short‑term highly liquid
investments that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value. Moreover, instruments
can only generally be classified as cash and cash equivalents where they are
held for the purpose of meeting short‑term cash commitments rather than for
investment or other purposes.
In the Group's judgement, bank deposits and treasury bills that mature in
excess of 3 months after origination date do not meet the definition of
short‑term or highly liquid and are held for purposes other than meeting
short‑term commitments. In accordance with IFRS, these instruments are not
categorised as cash or cash equivalents and are disclosed as money
market instruments.
2025 2024
Restated(1)
Group Company Group Company
Assets managed as cash £'000 £'000 £'000 £'000
Money market instruments 1,500 - 9,530 -
Cash 6,739 90 4,954 214
Cash equivalents 5,059 - 3,001 -
Cash and cash equivalents 11,798 90 7,955 214
Total assets managed as cash 13,298 90 17,485 214
2025 2024
Group Company Group Company
Cash and cash equivalents £'000 £'000 £'000 £'000
Cash and cash equivalents - sterling 10,490 45 6,621 196
Cash and cash equivalents - USD 410 23 277 17
Cash and cash equivalents - CHF 270 - 316 -
Cash and cash equivalents - other currencies 628 22 741 1
Total cash and cash equivalents 11,798 90 7,955 214
1. See note 32 for details of the presentational adjustment resulting
in the restatement of prior year amounts.
Details of how the Group manages credit risk are provided in note 25.
21. Current liabilities
Trade and other payables are stated at their original invoice value, as the
interest that would be recognised from discounting future cash payments over
the short payment period is not considered to be material.
2025 2024
Group Company Group Company
Trade and other payables £'000 £'000 £'000 £'000
Trade payables 717 121 212 -
Amounts owed to Group undertakings - 11,311 - 7,176
Other payables - - 43 -
Other taxes and social security 612 - 678 -
Accruals 4,410 - 3,997 -
Total 5,739 11,432 4,930 7,176
Accruals include £2,712,224 for the Group Bonus Scheme (FY-24: £2,385,865).
The Directors consider that the carrying amount of trade and other payables
approximates to their fair value.
2025 2024
Group Company Group Company
Current tax £'000 £'000 £'000 £'000
Corporation tax liability 51 - 1,865 -
22. Provisions
Provisions are liabilities where there is uncertainty over the timing or
amount of settlement and therefore require the use of estimates. Provisions
are recognised when there is a present obligation as a result of a past event,
and it is probable that the Group will be required to settle that obligation.
The amount recognised as a provision is the best estimate of the consideration
required to settle that obligation at the reporting date.
The Group has provisions reflecting its contractual obligations connected to
reaching the end of its contractual lease terms.
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
Provisions 436 311 122 122
The provision relates to obligations to pay for dilapidations in connection
with the Group's office leases, profit share arrangements and other future
payments with uncertainty. The main uncertainty relates to estimating the cost
that will be incurred at a known future point in time.
Movements in provisions during the period:
2025 2024
Group Company Group Company
£'000 £'000 £'000 £'000
At start of period 122 122 122 122
Additions 314 189 - -
At end of period 436 311 122 122
All provisions are reviewed at each reporting date and adjusted to reflect the
current best estimate. In those cases where the possible outflow of economic
resources as a result of present obligations is considered improbable or
remote, no liability is recognised.
23. Equity
Share capital represents the nominal (par) value of shares that have been
issued. Share premium includes any premium received on issue of share capital.
From time to time, the Group has bought ordinary shares for cancellation. The
cost of the buy-ins was taken directly to retained earnings. The nominal value
of the shares was taken to a capital redemption reserve. Retained earnings
includes all current and prior period retained profits and share-based
employee remuneration. All transactions with owners of the parent are
recorded separately within equity.
Issued share capital
The share capital of Record plc consists only of fully paid ordinary shares
with a par value of 0.025p each. All shares are equally eligible to receive
dividends and the repayment of capital and represent one vote at the
shareholders' meeting.
2025 2024
£'000 Number £'000 Number
Authorised
Ordinary shares of 0.025p each 100 400,000,000 100 400,000,000
Called‑up, allotted and fully paid
Ordinary shares of 0.025p each 50 199,054,325 50 199,054,325
Movement in Record plc shares held by the Record plc Employee Benefit Trust
("EBT")
The EBT was formed to hold shares acquired under the Record plc share‑based
compensation plans. Under IFRS the EBT is considered to be under de facto
control of the Group and has therefore been consolidated into the Group
financial statements.
Neither the purchase nor sale of own shares leads to a gain or loss being
recognised in the Group statement of comprehensive income.
Number
Record plc shares held by EBT as at 31 March 2023 8,735,002
Adjustment for net purchases by EBT (2,034,535)
Record plc shares held by EBT as at 31 March 2024 6,700,467
Adjustment for net purchases by EBT (1,528,583)
Record plc shares held by EBT as at 31 March 2025 5,171,884
The holding of the EBT comprises own shares that have not vested
unconditionally to employees of the Group. Own shares are recorded at cost and
are deducted from retained earnings.
During FY-25, the EBT acquired 500,000 shares directly from the market at a
monetary value of £325,408 (FY-24: the EBT did not acquire any shares
directly from the market).
Further information regarding the Record plc share‑based compensation plans
and relevant transactions made during the year is included in note 24.
24. Share-based payments
During the year ended 31 March 2025, the Group has managed the following
share‑based compensation plans:
a. the Record plc Bonus Scheme: share awards issued under the Record
plc Bonus Scheme ("Bonus Scheme") are classified as share‑based payments
with cash alternatives under IFRS 2;
b. the Record plc Share Scheme: share options issued under the Record
plc Share Scheme ("Share Scheme") are classified as equity‑settled
share‑based payments under IFRS 2;
c. the Record plc Share Incentive Plan: the Group operates the Record
plc Share Incentive Plan ("SIP") to encourage more widespread ownership of
Record plc shares by employees. The SIP is a tax‑approved scheme offering
attractive tax savings for employees retaining their shares in the scheme over
the medium to long term, and is expensed when issued;
d. the Record plc Jointly Owned Share Plan: participants' interests
awarded under the Jointly Owned Share Plan ("JSOP") are classified as
equity-settled share-based payments under IFRS 2; and
e. the Record plc Long-Term Incentive Plan: participants' interests
awarded under the Long-Term Incentive Plan ("LTIP") are classified as
equity-settled share-based payments under IFRS 2.
All obligations arising from the five schemes have been fulfilled through
purchasing shares in the market.
a. The Record plc Bonus Scheme ("Bonus Scheme")
Share-based payments with cash alternatives
These transactions are compound financial instruments, which include a debt
element and an equity element. The fair value of the debt component of the
amounts payable to the employee is calculated as the cash amount alternative
offered to the employee at grant date and the fair value of the equity
component of the amount payable to the employee is calculated as the market
value of the share award at grant date less the cash forfeited in order to
receive the share award. The debt component is charged to profit or loss over
the period in which the award is earned and remeasured at fair value at each
reporting date. The equity component is charged to profit or loss over the
period in which the award is earned.
Directors and senior employees receive one-third of their Bonus in cash,
one-third in shares ("Earned Shares") and may elect to receive the final third
as cash only or to allocate some, or all, of the amount for the purchase of
Additional Shares. The charge to profit or loss in respect of Earned Shares in
the period was £1,003,850 (FY‑24: £1,081,804). Other employees receive
two-thirds of their profit share in cash and may elect to receive the final
third as cash only or to allocate some, or all, of the amount for the
purchase of Additional Shares.
All shares which are the subject of share awards vest immediately and are
transferred to a nominee, allowing the employee, as beneficial owner, to
retain full rights in respect of the shares purchased. Shares awarded under
the Bonus Scheme are subject to restrictions over subsequent sale and transfer
and these restrictions are automatically lifted over one-third on each
anniversary of the Bonus payment date for the next two years. In the meantime,
these shares cannot be sold, transferred or otherwise disposed of without the
consent of the Remuneration Committee.
The Bonus Scheme rules contain clawback provisions allowing for the repayment
of Bonus payments under certain circumstances, including a material breach of
contract, an error in performance of duties or a restatement of accounts which
leads to a change in any prior award under the scheme.
b. The Record plc Share Scheme ("Share Scheme")
Equity‑settled share‑based payments
The fair value of the amounts payable to employees under these awards is
recognised as an expense over the vesting period of the award, with a
corresponding increase in equity. All such awards made by the Group involve
the parent company granting rights to its equity instruments to employees of
its subsidiary. Consequently, the subsidiary measures the services received
from its employees in accordance with the above classification under IFRS 2
and recognises a corresponding increase in equity as a contribution from the
parent. The parent has the obligation to settle the transaction with the
subsidiary's employees and therefore recognises an increase in its investment
in the subsidiary and a corresponding increase in equity.
The fair value of options granted is measured at grant date using the
Black-Scholes model, taking into account the terms and conditions upon which
the instruments were granted including any market or performance conditions,
and using quoted share prices.
The Share Scheme allows deferred share awards to be granted to employees and
Directors in the Record Group. Part 1 of the scheme allows the grant of
tax-unapproved ("Unapproved") options to employees and Directors and Part 2
allows the grant of HMRC tax-approved ("Approved") options to employees and
Directors. Each participant may be granted Approved options over shares with a
total market value of up to £60,000 on the date of grant. There is no such
limit on the value of grant for Unapproved options. All Approved and
Unapproved options granted in the year were granted with an exercise price per
share equal to the share price prevailing at the time of grant.
Share Scheme options granted during the period
The following table summarises the Share Scheme options that were granted
during the period:
Grant Option life Earliest Latest Number Exercise
Option type date (years) vesting date vesting date(1) of shares price
Approved 3 Jul 24 4 3 Jul 28 3 Jul 28 420,000 0.630996
Unapproved 3 Jul 24 4 3 Jul 25 3 Jul 28 1,120,000 0.630996
Unapproved 3 Feb 25 4 3 Feb 26 3 Feb 29 100,000 0.5652
Total Approved shares granted 420,000
Total Unapproved shared granted 1,220,000
Total shares granted during the period 1,640,000
1. Under the terms of the deeds of grants, options are exercisable for
twelve months following the vesting date.
All options granted are subject to the employee being in employment with the
Group at the relevant vesting date and to the extent performance conditions
have been satisfied.
The fair value of the services provided by employees has been calculated
indirectly by reference to the fair value of the equity instruments granted.
Fair value amounts for the options granted in the year ended 31 March 2025,
and for which a charge to profit or loss was made in the year, were determined
using a Black-Scholes option-pricing method and the following assumptions:
Weighted
Model input average value
Share price 62.70p
Dividend yield 11.69%
Exercise price 62.70p
Expected volatility 37.69%
Option life 4 years
Risk-free interest rate (%) 4.78%
Expected volatility is based on historical volatility.
The Group share‑based payment expense in respect of the Share Scheme was
£486,779 for the year ended 31 March 2025 (FY‑24: £655,090).
Outstanding Share Scheme options
At 31 March 2025, the total number of ordinary shares of 0.025p outstanding
under Record plc share compensation schemes was 10,578,000 (FY-24:
11,398,039). These deferred share awards and options are over issued shares, a
proportion of which are hedged by shares held in an EBT.
The following table summarises the outstanding options for the Share Scheme as
at 31 March 2025:
2025 2024
Weighted Weighted
average average
exercise price exercise price
Number £ Number £
Outstanding at 1 April 11,398,039 0.65 10,560,207 0.58
Granted 1,640,000 0.63 3,335,000 0.84
Exercised (1,043,750) 0.36 (1,915,336) 0.44
Forfeited/lapsed (1,416,289) 0.59 (581,832) 0.48
Outstanding at 31 March 10,578,000 0.68 11,398,039 0.65
Exercisable at 31 March 3,787,125 0.60 2,774,707 0.51
Weighted average share price on date of exercise 0.36 0.78
Weighted average contractual life 3 years 3 years
Performance measures
Performance conditions attached to all options granted to Board Directors
differ to those granted for all other staff. All Executive Director option
awards are subject to a performance condition and vest on each of the third,
fourth and fifth anniversaries of the date of grant subject to an earnings per
share ("EPS") hurdle linked to the annualised EPS growth for the respective
three, four and five-year periods from grant. Vesting is on a stepped basis,
as shown in the table below.
Percentage of
shares subject
to the award
Record's average EPS growth which vest
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