REG - Record PLC - Trading and Business Update

RecordAnnouncement

22/03/2024 07:00

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RNS Number : 8730H  Record PLC  22 March 2024

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22 March 2024

 

RECORD PLC

 

Trading and business update

 

Record plc ("Record", the "Company" or the "Group"), the specialist currency
and asset manager, announces a trading and business update for the year ending
31 March 2024 ("FY-24").

 

Ahead of its financial year end, the Company now reports updated AUME numbers
as at 29 February 2024 alongside the results of a review of certain business
activities. This internal review has formed part of the senior leadership
transition, in preparation for the previously announced appointment of Dr Jan
Witte as CEO effective from 1 April 2024.

 

AUME and Revenue Update

 

AUME has continued to grow over the two-month period since the previous
quarterly trading update (QE 31 December 2023), reaching US$101.3 billion at
29 February, including net inflows of US$1.1 billion and exceeding
US$100 billion for the first time in the Group's history. This represents a
milestone for the Group and further reinforces the already strong foundations
upon which the Group can continue to build. Consequently, the Group
anticipates FY-24 revenues will be approximately £45 million, in line with
current market expectations.

 

Technology Strategy Update

 

Over the last two years, the Group has worked with external consultants in
adding a new technology platform ("R-Platform"). However, following analysis,
the Board has concluded that this project has not produced the scale of
improvement targeted and would require further meaningful investment over a
prolonged period to reach the level required, and instead to focus the Group's
resources on building out its internal IT development expertise.

 

The Group has already started a reorganisation programme focused on the
restructure of its Technology team. In this respect, the recent addition of
senior technology professionals, appointed to lead and build teams in both
Infrastructure and Development, brings the necessary knowledge and expertise
in-house, enabling greater focus for development in key areas identified for
near-term and sustainable growth, more information for which will be
articulated in the full year results in June.

 

These changes have inevitably resulted in some one-off reorganisation and
professional costs, estimated at £0.5 million. The decision to discontinue
work on the R-Platform will result in the impairment of the development cost
capitalised to date of approximately £1.9 million, which will be treated as
an exceptional cost in the FY-24 accounts.

 

The Board considers the above decisions to be in the best interests of the
business over the long term and remains confident in the overall trajectory of
the Group. This is evidenced by the continued growth in AUME, revenue growth
of 75% delivered over the last two financial years to FY-23, and the
development of products planned for new business segments and geographies,
including the forthcoming launch of the Group's first infrastructure fund.

 

Timing of CFO Appointment

 

Further to the announcement made on 15 January 2024, the Company confirms
that Richard Heading will join the business on 3 June 2024 for a period of
handover with Steve Cullen before joining the Board as a Director and Chief
Financial Officer on 1 July 2024, simultaneous with Steve Cullen's retirement
from the Board. This final paragraph is made pursuant to Listing Rule 9.6.12R.

 

 

Jan Witte, Chief Executive Office Elect, commented:

 

"I'm delighted to announce reaching AUME of $100 billion, underlining the
strong interest we continue to see from both current and potential clients
across our product range.

 

"In the approach to my forthcoming appointment as Chief Executive Officer,
effective 1 April 2024, a review of the Group's current technology projects
and associated resources was enabled to ensure they remain fit for purpose and
continue to offer value-for-money for our shareholders.

 

"As a result of the review, the Board has decided that the level of further
investment required in order to complete the delivery of the R-Platform
project in particular is no longer a commercially optimal proposition. By
bringing the experience and expertise necessary to deliver technology projects
and enhancements in-house, we ensure a more efficient and focused approach to
future projects. I am pleased with the progress already made by the business
in this respect.

 

"Further information on the changes made above and future strategic plans will
be given in the full year results announced in June 2024."

 

 

For further information, please contact:

 

Record
plc
+44 (0) 1753 852222

David Morrison - Chairman

Dr Jan Witte - Chief Executive Officer Elect

Steve Cullen - Chief Financial Officer

 

Buchanan                                                                                               +44
(0) 20 7466 5000

Simon
Compton                                                                           record@buchanan.uk.com

Henry Wilson

George Beale

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