Record Share Discussion Threads

[lord gnome] 25/7/2019 16:44

Yes, I found that rather odd. I thought I had missed something.

[trident5] 25/7/2019 11:01

? The narrative to the first table in their report references an increase in EPS, the numbers in the table show it falling.

[masurenguy] 25/7/2019 10:23

Earnings Upgrade from Edison

After three quarters with outflows in assets under management equivalent (AUME), Record reported a modest inflow in its first quarter ($0.3bn) and the number of clients also ticked up. Competitive pressures remain a feature but the group is countering this with its focus on innovation and service enhancement. The breadth of new business opportunities is encouraging. A combination of sterling weakness and mix changes has led us to revise estimates, with EPS increases of 9% and 8% for this year and next.

Record reported AUME of $58.3bn at the end of Q120 (30 June), an increase of 1.7% or 4.0% in dollar and sterling terms respectively in the quarter. Market-related movements were neutral, while FX and volatility targeting related moves added $0.7bn. The $0.3bn inflow mainly arose from the partial reversal of an earlier $1.1bn reduction when Record took a tactical profit on behalf of certain dynamically hedged mandates. The number of clients increased from 65 to 68, with the flow movements implying that the new mandates are relatively small. However, where these are new relationships or for funds, there is the scope for growth over time. There were no performance fees crystallised during the period and fee rates were broadly unchanged. For further details see overleaf.

Outlook

The macro backdrop, with significant tail risks, continues to provide a favourable background for Record’s discussions with potential clients and it reports an encouraging range of new business opportunities diversified by geography and product. Our estimates exclude potential AUME inflows (or outflows) and do not include performance fees until crystallised. For FY19, performance fees of £2.3m were earned (9% of revenue or 0.5bp of average AUME compared with the 5bp average management fee rate). Weakness in sterling, together with the inflow reported and mix changes, have resulted in increases in our estimates with EPS up by 9% for FY20 and 8% for FY21.

[rimau1] 19/7/2019 07:55

Encouraging update, no performance fees but for me the key KPI that I use for REC is always client numbers and this is the second quarter in a row that client numbers have risen. I continue to hold and buy any dips.

[trident5] 19/6/2019 17:37

It's very superficial. Did the company pay for it?

The valuation section seems truncated - it just compares various valuation metrics against a peer group.

Nothing on whether consolidation of local authority pension schemes is a threat.

Collateral is mentioned as an opportunity when Record's singular offering (f/x) makes it a big vulnerability.

Costs and employees at Record have ballooned over the years - I can't believe any detailed write up doesn't cover this off.

[masurenguy] 19/6/2019 16:50

hTTps://www.edisongroup.com/publication/potential-for-further-positive-surprises/24434

[konradpuss] 13/6/2019 20:42

Well if you look at their five year record (now did you see what I did there?) this is a growth company.

If you net off the cash it is a very cheap business.

Neil Record will retire or sell out one day.

[rimau1] 13/6/2019 12:10

Here comes the ST bounce!

[cockerhoop] 13/6/2019 10:03

Uncrossing price was 30.5p so a substantial improvement on 32p was available for those with DMA.

[trewinney] 13/6/2019 09:08

Rimaul,
Thanks,certainly a good company.

[rimau1] 13/6/2019 08:41

Trewinney - i was quoted 32p at 8.06am, nothing special about that!

[royaloak] 13/6/2019 08:39

He probably uses a broker that does direct market access.

[trewinney] 13/6/2019 08:34

Rimaul
How did you manage to buy at 32p.You must have a very good broker?

[rimau1] 13/6/2019 08:17

I have reinvested in here this morning at 32p on the bell, key for me was the increase in client numbers, historically this was usually flat to falling and i couldn’t understand why. Should be a very decent long term hold with a high sustainable dividend.

[masurenguy] 13/6/2019 07:54

Good results with this years dividend representing a yield of 10% at last nights closing price and a current PER of just over 9. Glad that I reinvested here last November.

[robsy2] 13/6/2019 07:30

Very decent set of results with significant performance fees being earned. This will now payout 6% (at 30p) on 01.08.19.Annual yield is now just under 10%, covered by cash earnings and backd by a very strong balance sheet.The current share price is very cheap IMHO.
Let's see what Mr Market thinks of it.
R2

[robsy2] 17/4/2019 08:25

Hmmh. Nothing much positive there.
R2

[robsy2] 17/4/2019 08:22

Hmmh. Nothing much positive there.
R2

[robsy2] 16/4/2019 09:42

Thanks krp that is a good summing-up. The share price action bodes well.
R2

[trident5] 16/4/2019 09:03

Number 5 explains what the sales director has been doing - ridiculous.

[konradpuss] 16/4/2019 07:53

Figures out tomorrow.

Let's hope they have not lost any more mandates.

Wish list.

1. They have added mandates
2. They have earned some performance fees
3. They are being taken over by a large institution at 100p! (only joking)
4. They are not issuing any more shares to the management without buying the same
number in every year.
5. They have not bought another silly venture from the directors!

[mrthomas] 09/4/2019 13:32

Thanks for the information on the dividend I've got a few weeks before I think the results come out and given the volatility in the market I might try going in at 25 pence

[konradpuss] 08/4/2019 20:22

I was at last years' AGM.

I was informed that the company had three strategies - if just one took off or as was told to me became fashionable it would be very good for the company.

The main directors all have much 'skin in the game' so I guess they are out pitching.

I like the fact of no debt and their cash is real (I hope) not like Patisserie Valerie!

[robsy2] 08/4/2019 19:46

Big if? I’m much more confident than that. They have been moving towards low fixed fees +performance fees and have have started hitting the targets recently and they have a lot of cash on the balance sheet they might even make the divi with cash earnings. If all goes reasonably well which it might not of course. The share price flags up the doubts. I think the margins are squeezed, reg stuff is costly and they sure ain’t finding it easy to add clients...
R2