REG - Record PLC - Fourth Quarter Trading Update

RecordAnnouncement

26/04/2024 07:00

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RNS Number : 1103M  Record PLC  26 April 2024

26 April 2024

RECORD PLC

FOURTH QUARTER TRADING UPDATE

 

Record plc ("Record", the "Company" or the "Group"), the specialist currency
and asset manager, is pleased to announce its trading update for the three
months ended 31 March 2024 ("Q4-2024") and the financial year ("FY-2024").

 

Highlights: FY-2024

 

·    AUME increased by 17% to US$102.2 billion (FY-2023:
US$87.7 billion)

·    Net inflows of US$6.8 billion for the year (FY-2023:
US$9.1 billion)

·    Performance fees of £5.8 million earned during the year (FY-2023:
£5.8 million)

 

Dr Jan Witte, Chief Executive of Record plc, commented:

 

"I am excited to take over the reins as CEO at a time when the Group's AUME
has reached new heights and the outlook for our business remains strong. As
recently announced in the trading update on 22 March, AUME continues to grow
and now exceeds USD$100 billion for the first time in our 40+ year history.

 

"An AUME increase of 17% over FY-2024, closing the year at USD$102.2 billion,
presents a milestone which reinforces the already strong foundations upon
which the Group can continue to build.

 

"Our growth is the result of a combination of increased demand from existing
clients, who are increasing their mandates, and new clients. The net inflows
into currency management of USD$15.6 billion over the last two years
represent 19% of FY-2022 closing AUME. In addition, the launch of two new
funds has delivered net inflows into asset management of USD$0.3 billion
during FY-2024.

 

"Building on our existing proposition and the demand we observe for our
services as a specialist asset manager, we are now refining our product range
to focus on a select number of best-in-class products which present attractive
and meaningful opportunities for us, making Record a stronger, less
concentrated, and more robust business.

 

"Following the decision to discontinue development of the R-Platform and the
consequent impairment write down of £1.9 million announced on 22 March 2024,
we are also continuing our review of the Group's expenditure and resource
allocations to ensure they remain fit for purpose and continue to offer
value-for-money for our shareholders.

 

"I look forward to the year ahead, and to working hard with a strong team of
colleagues in growing the business further. More information on future
strategic plans will be given in the full year results announced in June."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 31 March 2024 totalled US$102.2 billion
(31 December 2023: US$99.5 billion), and expressed in sterling totalled
£80.9 billion (31 December 2023: £77.9 billion).  The composition of
AUME by product was as follows:

 

 AUME - US$ billion
                           31 March 2024    31 December 2023
 Dynamic Hedging           16.5             15.4
 Passive Hedging           76.4             76.3
 Currency for Return       5.5              4.9
 Multi-Product             3.4              2.5
 Cash & Futures/other      0.4              0.4
 Total                     102.2            99.5

 

2.            AUME Movement

Net client AUME movement in the three months to 31 March 2024 was as
follows:

 

 Net AUME movement - US$ billion
                                                3 months to       3 months to

                                                31 March 2024     31 December 2023
 Dynamic Hedging                                0.0               0.0
 Passive Hedging                                (1.0)             11.0
 Currency for Return                            0.1               (0.0)
 Multi-Product                                  0.8               (3.2)
 Cash & Futures/other                           0.0               0.1
 Total net flows                                (0.1)             7.9
 FX movements and mandate volatility targeting  (4.2)             5.3
 Movements in global stock and other markets    7.0               1.8
 TOTAL AUME MOVEMENT                            2.7               15.0

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q4-2024, average fee rates remained broadly unchanged from the previous
quarter.

 

Performance fees of £0.8 million were earned in the quarter.

 

Record will announce its FY-2024 results on 28 June 2024 and its Q1-2025
trading update on 26 July 2024. If you wish to attend the FY-2024 results in
June, please contact record@buchanan.uk.com (mailto:record@buchanan.uk.com) .

 

-Ends -

 

For further information, please contact:

 

 Record plc                              Tel: +44 (0) 1753 852 222

 Dr Jan Witte, Chief Executive Officer

 Steve Cullen, Chief Finance Officer

 Buchanan                                Tel: +44 (0) 20 7466 5000

 Simon Compton                           record@buchanan.uk.com

 Henry Wilson

 George Beale

 

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