Record Share Discussion Threads

[adamb1978] 20/10/2023 09:44

ok, thanks NChanning. I guess the divi could mechancially be reduced in that case, though to your point stay within the stated policy

[nchanning] 20/10/2023 09:39

This was a bad quarter for bonds and a bad quarter for equities so no surprise to see AUM drop a little . The news on net inflows and performance fees is a positive surprise . Weakness in GBP also a big help as measured in GBP AUM actually rose

[nchanning] 20/10/2023 09:34

The policy is to pay between 70-90% of earnings as a dividend ....

[robsy2] 20/10/2023 08:30

Ah ok , so the forecast is 2m this year , i was focussed on last years figure of 5.8m.

[adamb1978] 20/10/2023 08:30

Hi

Former holder here, and this post isn't meant to be a wind-up, but do people think that the dividend is safe?

Reason for asking is that if you model the management fees against the AuM and use similar rates to previous years, market forecasts of £45.7m turnover looks like a challenge. If that is missed, you probably have an uncovered dividend. Perhaps they live with that for a FY24 if they have comfort over it being covered in FY25?

Cutting the divi here would be horrible for the share price....

Adam

[nchanning] 20/10/2023 08:14

Only 2 million annual performance fees in the forecasts and we're already at 1.5m after 6 months ...

[robsy2] 20/10/2023 07:21

It is just another 90 odd day period in the life of REC, but the results look ok to me.Resilient-ish though performance fees are down this year on last - so far anyway. 1.5m v 2.8m at this stage last year , FY23 5.8m , so they are an important part of the picture .
Lesley notes a slight slowdown in progress on new initiatives.
The expected yield now is 7.7% for the year ending 31.03.24.
I have done well trading REC over the years .I say trading, but what I mean is I always hold some REC, for the divis as much as anything else, but have noted how the share price can overreact to the regular quarterly updates.
If reaction is negative then I will probably buy more if we go sub 70p.

[konradpuss] 23/8/2023 15:48

Cerrito, I have a worry about the Crypto fund they are planning.

O.K. Record will probably put a very small amount into it, however I loath Crypto.

[cerrito] 23/8/2023 15:31

I have been looking at the chance to buy sub 80p but I have decided to pass.
From the last IMC meeting(which I find very enjoyable and illuminating after the many stilted IMC sessions we need to go through) I did note the CEO’s comments that REC does better with high volatility, interest rate differentials and a weak sterling which is of course what we have had but fret a bit about how sustainable it is.
I did read in the AR the Q&A with the new Chair and he went on about Record diversifying into new areas-of course a theme of the IMC meetings. I fret as to them coming a cropper in pastures new. The external directors seem to be very good but I would prefer if they had relevant expertise.
I am more than happy to stay with what I have and in the to me unlikely event it drifts down to the low 70’s, will reassess.

[cerrito] 23/8/2023 15:04

Schroders slimming by 1.5pc explains recent share price weakness.
This is only the second change of shareholding RNS since the end of last August which shows the stability of the shareholder base-the other was when Neil Record sold abit in March.

[konradpuss] 22/8/2023 19:41

Adam, I think these folk will deliver on their targeted £60 million turnover with a 40% margin in the allotted time frame.

It must have been hard for the board to commit to those two 'hostages to fortune'.

I have more faith in Record to deliver these two than Sunak to deliver on his five promises. I doubt he will achieve one.

If Record does deliver, I can see a doubling of the share price from the circa 80p as of tonight.

[adamb1978] 21/8/2023 16:55

Given I've posted on here recently, I should say that I sold my position 2-3 weeks ago.

Reason being that I felt that the recent trading statement is likely to lead to declining earnings this year, and management weren't sounding hugely confident about the margin part of their medium term forecasts on the recent call. I therefore decided that there was more downside than upside in the next year so bowed out.

Also felt that somewhere around the current c78p price had acted as resistance in 2022 so could be support now, and then its down to mid 60s (previous supprt in 2022 and where it jumped to in early 2021). I wouldnt rule out getting back in - great yield, great, ROCE and I like that management had a plan for the medium term.

Hope all goes well for holders.

[cerrito] 21/8/2023 16:45

I will need to focus on this tomorrow as becoming interesting to buy more.

[konradpuss] 13/8/2023 21:17

Trident, 15 years ago this was a company making most of its money on a product that just disappeared.

They have reinvented them selves.

I like the management and I think they will get to their goal.

[trident5] 13/8/2023 21:02

That would be about where they were at IPO - 15 years ago.

[konradpuss] 13/8/2023 20:50

Trident, she said that she would do such if the result was a share price doubles or better.

Net no loss and senior staff then have more 'skin in the game'.

Neil Record has stepped down and Leslie Hill will also do so in circa two years. They have big share holdings.

If you want the folk that 'step into their shoes' to be shareholder minded they need a stake.

[trident5] 13/8/2023 20:02

Thanks. Bit worrying that the CEO says she want to give millions in shares to senior staff - where did you see that?

[tmfmayn] 13/8/2023 15:56

Screening For My Next Long-Term Winner: RECORD #REC

Screening for consistently high margins and ROE leads to currency manager Record. Maynard Paton weighs up the small-cap’s super cash flow, well-paid workforce, diversification ambitions and bold targets:

[nchanning] 18/7/2023 12:00

Believe brokers are now baking in c. 2 million of performance fees annually into forecasts , so this is in line rather than ahead

[shallwe] 18/7/2023 11:54

The share price certainly doesn't deserve this reaction to what was a very ordinary quarter update

[konradpuss] 18/7/2023 11:26

And a .5 million performance fee.

[adamb1978] 18/7/2023 11:12

NChanning

Yes, though current market environment dictates that in-line statements send a price downwards!

Adam

[nchanning] 18/7/2023 11:00

Not sure this is really a bad update - high margin products up and low margin product down

[adamb1978] 17/7/2023 20:56

Q1 trading statement due tmrw

[adamb1978] 13/7/2023 13:50

Thanks for the reminder BingoBanjo. Away with the family for a couple weeks so probably going to have to listen to a replay when back. Would welcome hearing about any salient poitns for those able to join today though!