Record Share Discussion Threads

[cerrito] 20/11/2023 15:41

Yes Robsy2 would that all IMC calls as fun and informative as hers.
I continue to be uncomfortable about them going into pastures new without the expertise and interesting that they misread the time it takes to get new funds off the ground.
What do they know about infrastructure?
Leslie said they were full of drive and determination but what I want is experience. As I think I have said before BOD do not appear to have much experience in such diversification.
No intention of selling but making me nervous to press the buy button.
Will relisten when recording is out.

[konradpuss] 17/11/2023 21:02

Maybe with the stepping down of Leslie Hill today and Neil Record recently we are closer to a buy out/sale of the company?

Do these folk want to keep looking over the shoulder of the new management - no, they want the dosh and a nice retirement.

By the way, you don't get better than Leslie Hill and Neil Record.

[topvest] 17/11/2023 20:34

Thanks - good summary. Agreed - positive long-term. Some delay on new funds. Not surprising really. Overall, a tad disappointing but that's been showing in the share price for a while. More than happy to keep holding.

[robsy2] 17/11/2023 16:35

Just attended the presentation, Leslies last most likely . I will miss her.
My notes are as follows.
Profits down for multiple reasons , while fee income is up , performance fees are down but they see
that the "wind is set fair " for more performance fees in H2.

Overall the say they are on track for the full year. They have visibility on income to make up the ground.
Some performance slippage due to increased costs in general , increased taxation and extra costs associated with expanding the business:new people , new office in Germany, upfront costs of establishing the new funds etc.
They are confident in the new funds, the clients are ready and committed. REC expects much higher fees from these funds and long-term scale-up.
They remain confident of the 60m turnover target set in 2022, but recognise that the World has changed a bit since then.My feeling is that they are realising how long it takes to get new funds up and running. Turnover at 60m in FY25 is flagged up now as possible, though unlikely. Much more likely they say to be achieved in FY26/FY27. What they do seem particularly confident about is that they will get there saying that " we will certainly hit the 60m target", indeed they see 60m as "a step on the way ".
Sounds positive to me.

[smidge21] 17/11/2023 12:39

https://arxiv.org/abs/1605.07230

[nchanning] 17/11/2023 09:47

Didn't the new CEO have an absolute 'mare at the Capital markets day . He could hardly get a sentence out . Hopefully he was just nervous and is a good operator

[nchanning] 17/11/2023 09:46

These goals were always incredibly ambitious , if Record were to hit in them in say 3 years time , the share price would easily triple . Would be happy just growing EPS at 10-15 % annually from here

[konradpuss] 17/11/2023 09:10

It looks like the two goals of £60 million revenue and a 40% margin are going to take longer.

I have met the new CEO and was quite impressed.

[volsung] 17/11/2023 09:09

Nice divi stock

[cockerhoop] 17/11/2023 08:58

He presented on the Capital Markets Day, seemed a pretty impressive character with perhaps a better eye for detail than Leslie.

I think Leslie should be commended for shaking up the 'sleepy' REC of old and introducing a growth path but now she's missed her growth target is right to hand the baton on. It has been well trailed succession plan.

[adamb1978] 17/11/2023 08:46

Weird CEO announcement - nothing given about his/her background...just relocation to London and on the board of a couple subsids!

[nchanning] 17/11/2023 08:41

Shouldn't have surprised investors as already flagged that this was a poor quarter . However this was largely driven by market movements , with bonds destroyed over this 6 month period and equities flat . Bond yields have begun to fall now and equities have begun to rise ...

[rndm355] 21/10/2023 10:28

A few positive comments on Record on YouTube, brief review of trading update:

[konradpuss] 20/10/2023 19:33

Adam, if you want to buy in in quantity, I think you might struggle. Just look at the average daily volume, today being an exception.

You might be right on their aspiration of £60 million and 40% margin by 2025, my view is they will achieve this. Just my humble opinion.

[trident5] 20/10/2023 16:29

To me - it's not a currency but a gambling medium, with no means of assigning a fair valuation - so selling crypto funds must come with a heavy dose of BS. A bit like going horse racing. Unless they're investing in crypto infrastructure

If I was an institution investing in their currency funds I'd wonder where the BS ends. I think it undermines their "brand".

It also seems a rather desperate diversification in search of growth.

[konradpuss] 20/10/2023 12:51

Trident, it is all to do with their exposure which will be, I believe, very small.

As I said, I don't like Crypto, however many do.

[mpage] 20/10/2023 12:33

@AdamB1978

I don't think we need to be worried about the basic div (unless there are some huge and unexpected mandate redemptions/costs overruns). Couple of reasons:

The board has only just sanctioned a 25% uplift in the div - they'd look hugely incompetent if they then went and cut that the following year.

Revs are in USD divs are paid in GBP. REC benefits from a strong dollar vs sterling.

IF things got difficult it's the special div that wd be the first to go.

The FD said (last AR) that they can pay up to 100% of earnings - without having to touch the cash on the BS. Which needs to sit there for regulatory purposes and to reassure their large/conservative clients.

FD: "To this end, the Group maintains a financial model to assist it in forecasting future capital requirements over a three-year cycle under various scenarios and monitors the capital and liquidity positions of the Group on an ongoing basis. The Group has no debt."

[trident5] 20/10/2023 12:31

Their venture into crypto is a red flag for me.

[konradpuss] 20/10/2023 12:17

I think, due to the regulatory complexity, it is difficult to time a launch of a fund.

I believe a Crypto fund might be the next on the roster.

Am I a fan of Crypto, no, however lots of folk are.

[trident5] 20/10/2023 12:12

Yes, but reading between the lines that isn't going as well as they hoped.

[konradpuss] 20/10/2023 11:43

Trident, I think their £60 million and 40% profit target for Y/E 2025 will depend on some more funds being launched.

[kalai1] 20/10/2023 11:42

Record plc issued a trading update for its Q2 ended 30th September this morning. Performance fees of £1.0 million were earned during the quarter with FY-24 YTD fees of £1.5 million. AUME were US$84.5 billion, including net inflows of US$1.5 billion for the quarter. Plans for diversification through the asset management and digital asset businesses continue to progress well, albeit in places more gradually than initially envisaged. Management will give more detail on strategic progress at half-year results in November. The balance sheet remains solid with negative net debt, valuation is average with forward PE ratio at 11.5x. Share price lacks momentum. Monitor for now...

...from WealthOracle

[trident5] 20/10/2023 11:14

So, how will they match last year's profits if performance fees are significantly lower than last year, which YTD they are, and the forecasts seem to imply similar profits to last year?

[somerset lad] 20/10/2023 10:21

Edison's most recent note from July forecasts FY24 performance fees of £1.5m (whilst noting that their forecast is below an annualisation of the £0.5m earned in Q1). With today's £1.0m from Q2, REC has reached the FY24 forecast already.