Record Share Discussion Threads

[gbill11] 20/7/2016 19:37

what a great share

PE ratio of 10.
6.5% yield and the balance sheet is so strong they are going to start paying exceptional dividends as well.

Rock on!

[topvest] 12/7/2016 19:48

No, but don't think its mentioned in the accounts from what I can remember.

[shauniekent] 11/7/2016 21:37

Sure it hasnt hedged its own earnings?:-p

[topvest] 11/7/2016 20:14

Yes, with a sterling cost base its very good news.

[robsy2] 11/7/2016 10:56

I have bought a few more this morning.
R2

[spob] 06/7/2016 14:27

worth highlighting that 79% of revenue here comes from overseas

[tmfmayn] 28/6/2016 15:54

In theory you'd have thought REC should benefit. Most of the AUMe is denominated in non-GBP and so should now produce greater management fees when translated into GBP. Costs all in GBP should then lead to greater profit.

That said, the CHF experienced sudden volatility last year (many REC clients are Swiss) yet there was no discernible improvement to the business. Indeed, in August last year, there was a somewhat strange announcement stating a client had withdrawn a substantial mandate as a "consequence of currency market movements" after the Chinese rout.

So I am not entirely convinced further volatility will lead to extra mandates just yet. But I will be more than happy to be proved wrong!

[boonkoh] 28/6/2016 14:13

They might have taken a loss on Brexit day, depending on how they have positioned their currency funds. But long term the demand for currency hedging should increase given the volatility.

[shauniekent] 28/6/2016 06:42

Are you sure theyll benefit and arent indeed hurting ?

[topvest] 24/6/2016 18:25

Yes, one of the few genuine beneficiaries of all this turmoil.

[boonkoh] 24/6/2016 13:39

Looks like market is waking up to REC's increasing demand due to currency volatility....

[trident5] 24/6/2016 07:25

Rec's clients will be hurting big this morning

[topvest] 18/6/2016 10:47

Yes, agreed. To be fair, I think they probably had to give a pay rise last year in a toppy professional services labour market. Hopefully, that will be the last pay rise until we get some growth.

[hammers976] 18/6/2016 00:03

I'm happy with results bar the 10% pay raise.

[topvest] 17/6/2016 20:31

Solid results, albeit nothing too exciting to announce. One day market conditions will fall in their favour. The positives were the Wisdom Tree product, higher client numbers and the talk of special dividends. Negatives were the lack of anything definitive in terms of new mandates and a general talk of more challenging conditions. Happy to hold though as its a high quality business.

[tmfmayn] 16/5/2016 15:08

I guess the staff-count explosion you refer to covers the period since the firm floated -- 38 staff in 2007 versus 68 in 2015. I suspect the additional staff relate to compliance and regulation etc, post-banking crash. But I don't know for sure. The extra staff can't surely be for handling more clients.

The last four years have seen the staff count bob between 64 and 68, while revenue bobbed around the £20m mark and operating profit bobbed around £6-7m. But it is galling as you suggest that the staff can enjoy a 10% all-round pay rise this year while large mandates are lost, AUMe goes nowhere and the dividend remains unchanged.

And although the 30% profit share is simple and everyone knows where they stand with it, yes, the staff do enjoy a bonus regardless of whether profit goes up or down. 68 REC staff divvied up almost £7m in wages and pension costs in 2015, a nice £100k each. There really ought to be some business improvement soon to justify this staff cost.

[trident5] 13/5/2016 23:10

I can't understand how they find work for so many people - the number of staff has exploded with no corresponding rise in mandates or turnover.
And the reward structure needs changing to reward growth, at the moment they do very well if the business just stands still.

[hammers976] 04/5/2016 14:11

Got in today at 25.74p. With net current assets of 15p a share and a 6% dividend yield, it looks like a bargain. Though I'm uncertain about the large director ownership and salaries.

[trident5] 17/4/2016 08:48

Interesting?
I'd strongly dispute that. Why not put it on the Galliford Try board and bore them with it.

[sjc] 16/4/2016 22:43

interesting


free stock charts from uk.advfn.com

[topvest] 31/3/2016 19:53

Yes, they do have multiple growth opportunities, albeit always tempered with the risk of losing a couple of big institutional mandates. Overall, think its fantastic value. IF Currency for Return makes a comeback this will be a multi-bagger. Big IF though! Only time I've bought a company in four separate lots.

[robsy2] 31/3/2016 18:56

Yeah I've been thinking about this one quite a bit recently. The Wisdomtree link- up has potential. I ran the Bearbull valuation spreadsheet over it and it shows up quite well. Results soon, divi safe , good yield and some hope of a partial return to former glories. We'll soon find out, results due in April.
R2

[topvest] 31/3/2016 18:27

Added a few more today. Too cheap.

[topvest] 23/2/2016 14:29

Yes, no doubt a £ cost base and US¢ revenues is a nice headwind given £ is now at a seven year low.