UK's Record FY26 revenue falls on mandate changes and lower fees
UK's Record FY26 revenue falls on mandate changes and lower fees
Overview
UK asset manager's FY26 revenue fell 4% yr/yr, driven by mandate changes and lower fees
FY26 basic EPS declined 22% yr/yr, broadly in line with company's expectations
Assets under management rose 14% to $114.6 bln, supported by new business wins
Outlook
Record expects new mandates to contribute £4 mln to revenue in FY27
Company says short-term revenue predictability remains uncertain due to timing of mandates and market conditions
Record sees medium-term outlook supported by growing AUM and improved earnings quality
Result Drivers
MANDATE CHANGES & CLIENT LOSS - Revenue and management fees declined due to mandate re-compositions and the loss of a client with schemes across multiple products in late FY25
LOWER PERFORMANCE FEES - Performance fees decreased compared to the prior year, contributing to overall revenue decline
PRIVATE MARKETS GROWTH - Revenue from Private Markets, especially Solutions for Asset Managers, increased due to new business wins and higher management fees
Company press release: ID:nRSS0036Ja
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Miss | GBP 40.10 mln | GBP 40.69 mln (1 Analyst) |
FY Net Income |
| GBP 7.03 mln |
|
FY Gross Profit |
| GBP 39.91 mln |
|
FY Operating Profit |
| GBP 10.02 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Record PLC is GBp140.00, about 158.3% above its June 18 closing price of GBp54.20
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)