Record Share Discussion Threads

[the other kevin] 22/6/2011 10:56

Not as far as I thought, is the answer. Boosted by positive director buying.

[the other kevin] 21/6/2011 12:52

How far will it fall after it goes xd tomorrow, is the big question?

[ayiman] 19/6/2011 08:37

Now showing a 50%+ rise in little over a week following results and with a very big buy at the close on friday. Watch this space!
Ayi

[142minty] 15/6/2011 09:42

Topvest the "trading" AR portion represents 12% of AUME. 2 of the 3 new products ( emerging markest etc) were launched in january this year, the "stressed" euro product launched this month so you cant expect much yet. Have a look at the presults presentation it makes an interesting read ..it is obviously a propoganda instrument but gives some very clear insight into the product suite , timings , client numbers per product etc etc. The fact that they are building the sales side to boost these new areas of business shows they are confident - in the end they are stil well respected amonsgt investment consultants so i have no doubt these will take off
Currency for Return is an entirely cyclical play and needs to be seen within a far longer timeframe than some investors are prepared to wait for. If you had invested in the funds from inception to IPO you would have seen a very very healthy return but that is becauise the market/economic environement was perfect for exploiting currency as a new asset class due to the arbitrage available in trading high and low yield currencies . They wont drop the product because they believ the cyle will happen again and there will be money to be made but to be fair it will be very challenging to attract more clients after recent performance until they have sustained recovery in the funds

anyway take a look at the PRESENTATION here

[topvest] 14/6/2011 21:31

Hmm... I think it's too early on this one as trading is still going downhill fast. Given no mention of how much they have sold the new products other than their seed investment indicates that sales are nil or close to that. Will await the interims and re-assess then.

[142minty] 14/6/2011 16:25

For me , the most positive thing about this is the investment in new sales staff to promote the new product suite. I always said that they would return to their roots ( active/passive hedging) and that is what the foundations of the business were built on and something which they will always have to sell whilst devloping new products ( there are now 3 new products coming to the market place). The hedging side produces 88% of AUME and that side of the business is performing adequately so loss of more AR clients isnt that worrying . Even the renegotiation of the management fees charged to the large $6b US pension fund means that that very significant client is staying in for the time being , even though the margins on that particular account are reduced - it will also not effectm their other mandates apparently. I feel positive . Th rise today could easily dissapear tomorrow due to the liquidity issue over this stock.
I think the results today ,although not significantly value enhancing to old timers like me show a lot of hope for the future . If i had got in now at 28p id be very happy with this stock...there is much transforming in this company

best

Minty

[qvg] 14/6/2011 13:40

Positive market reaction seems correct IMHO. If the suggested reduction in Interim Div is applied to the whole year, it would still have a yield of 6%. Assuming a bleak scenario that the Currency for Return products fall to zero, I still get a Fair Value in the high 40's. If they can start getting revenue from some of their new products, Fair Value obviously goes higher.

[142minty] 14/6/2011 11:54

Thanks Masurenguy..........this company certainly has some chutzpah!

Best

Minty

[masurenguy] 14/6/2011 11:45

Goes ex-dividend on June 22nd - Friday next week - and is due for payment on August 3rd !

[142minty] 14/6/2011 11:37

and when does the FD 2.49p get paid ? Anyone know? - i cant find the date and yes interim pot cut to 0.75p but will be revisited. Coming in at this price with everything going on does look extremely good value IMHO

best

Minty

[solarno lopez] 14/6/2011 08:16

Many thanks T1TCH

[t1tch] 14/6/2011 08:12

The Board's current intention, subject to business conditions, is to rebase the interim dividend from 2.0p per share to 0.75p per share. In rebasing the dividend, the Board will be mindful of achieving a level which it expects to be covered by earnings going forward.

[solarno lopez] 14/6/2011 08:10

.Dividend is not covered by earnings is it likely to be cut in future years

[chrisdgb] 14/6/2011 08:09

Indeed all in line, no change to JP Morgan forecasts, represents incredible value.....

[masurenguy] 14/6/2011 07:43

Dividend maintained - current yield 17.8%, PER is 6.5 and P/EVR is 3.8 !

RNS Number : 3604I
Record PLC
14 June 2011

FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2011

Financial highlights:

§ AuME¹ $31.4bn at 31 March 2011 (down 8%)

§ AuME £19.6bn at 31 March 2011 (down 13%)

§ Management fee income of £28.1m (down 15%)

§ Pre-tax profit £12.5m (down 25%)

§ Continued strong balance sheet with no debt and a cash balance of £24.7m (up 13%)

§ Operating profit margin to 31 March 2011 of 44% compared to 49% for the year ended 31 March 2010

§ Basic EPS of 4.03p per share (2010: 5.39p)

§ Proposed final dividend for the year to 31 March 2011 is 2.59p per share giving a total dividend in respect of the period of 4.59p per share (2010: 4.59p)

Operating highlights:

§ Dynamic Hedging AuME remained broadly unchanged and represented 38% of AuME at 31 March 2011 (2010: 35%) but grew to represent 62% of management fee income (2010: 43%)

§ Client numbers fell by 47 to 46 by year end 31 March 2011

§ Alpha Composite² return of -3.39 % for year ended 31 March 2011 (year to 31 March 2010 -0.73%)

§ Launch of FTSE FRB10 Index, Emerging Market Currency and Euro Stress Funds

§ Plans to launch Currency Momentum and Currency Value strategies in the current year

¹As a currency manager Record manages only the impact of foreign exchange and not the underlying assets, therefore its "assets under management" are notional rather than real. To distinguish this from the AUM of conventional asset managers, Record uses the concept of Assets under Management Equivalents (AuME) and by convention this is quoted in US dollars.

² Currency Alpha Composite - an investment return track record generated by the aggregation of all standard segregated track records for Record's established Currency for Return product. The Currency Alpha Composite is asset weighted, based on AuME for each account.

Commenting on the results Neil Record, Chairman of Record plc, said: "The last financial year was clearly challenging for Record as clients continued to withdraw funds from the existing Currency for Return products. Contrasting this has been the stability of both clients and AuME for the hedging business (Dynamic and Passive) that now represents 88% of our AuME. The split of business between Dynamic Hedging and Currency for Return has changed substantially over the last couple of years.

Management fee income fell to £28.1m as a result of the client losses in the Currency for Return product. Operating margins remained strong at 44% and the balance sheet had £24.7m cash and no debt at the year end. We have seeded two new funds in the year, a product to track the FTSE Currency FRB10 index and an emerging market product. Additionally, in June we launched a Euro stress fund. All these products are being actively marketed to consultants and clients.

Looking to the current year, we hope to achieve success with Passive and Dynamic Hedging. Over the longer term we believe that the suite of currency return products we are developing will be attractive to clients as they look to invest in currency as it becomes established as an asset class."

Analyst briefing

There will be a presentation for analysts at 9.30am on Tuesday 14 June 2011 at the offices of JPMorgan Cazenove Limited at 20 Moorgate London EC2R 6DA. A copy of the presentation will be made available on the Group's website at www.recordcm.com.

[chrisdgb] 13/6/2011 13:34

stock is looking well bid ahead of the results..

[masurenguy] 08/6/2011 09:55

Final results are due next Tuesday (June 14).

[chrisdgb] 08/6/2011 09:49

Let us hope the upcoming results highlight further positive progress....a nice new mandate would be welcome....

[142minty] 03/6/2011 12:47

Trader Vics

They have had plenty of opportunities to sell since the end of the lock in and at much higher prices..........

Minty

im going (to try) and buy some more

[chrisdgb] 03/6/2011 12:31

Yes way oversold, some buying interest today, next stop 30p....?

[trader vics] 01/6/2011 15:29

a Massive downward move for nearly a year and half, pathetic! at least it can improve from here. of course the directors haven't sold, because they have missed the boat to sell!! this should be worth a quid........one day. imho,
in 2 years +

[chrisdgb] 26/5/2011 15:09

no stock around, could get squeezy if we get positive news..

[mangal] 26/5/2011 13:49

yes, it's the bugs in the air :-Q