Record Share Discussion Threads

[topvest] 30/8/2015 17:26

It's a bit disappointing but was already flagged that this might happen. Short to medium term prospects are still very good in my view.

[robsy2] 28/8/2015 10:02

Thanks TMF
More or less as expected. 2016 mitigated by having 1/3 of the income booked.
The positives remain in place .
+ more volatility is good for business
+ conservative forcasts.no new mandates factored into the forecast figures.
+ 3 year track record helps sell the higher margin funds.
+ divi high and secure

Let's see if they can deliver their clients and us something.
R2

[tmfmayn] 28/8/2015 09:01

Edison broker note out

[spooky] 25/8/2015 11:58

I would be a little careful with those calculations, my information is that they are inaccurate, you may wish to call the company directly.

[robsy2] 25/8/2015 11:54

yes you are right.
Ok ,lets have another look, rough figures, so please correct me if I'm wildly wrong...
year 2015 return seeking strategy revenue 2.8m of the 20m turnover.so 4.9 down to 2.1 means a 57% drop in fees for the whole year so that is a drop of 1.6million.
so adjusted income 2016 7.7 less 1.6 = 6.32
tax at 22% post tax =1.39, leaving net income 5m GBP ish in 2016 against 2015 figure of 6m GBP . a reduction of 17%
eps 2015 2.65
eps 2016 2.65 -17% = 2.2p, dividend cost 1.65p so yes not good and yes its material but I still see a dividend being paid and mandates can be won, they suggest that this money may flow back in, i did in 2015 and it is only the second quarter of 2016 year
Or is this a sign of something more serious?
R2

[tmfmayn] 25/8/2015 11:26

Robsy2 -- think return-seeking AUMe now $2.1bn (4.9 at Q1 less 2.8). my rough sums suggest hit to revenue of c£2.8m and something above £2m on profits.

[robsy2] 25/8/2015 09:58

I've topped up,had to pay 32p,so they are already off the bottom.At 32p the yield is 5.5%. Overreaction, IMHO. Return seeking strategies year end 2015-4.86b now 3.8b, at 16bps means a bottom line hit of 600k GBP ie a 2.87% fall in net income. Clients will come and go and with quarterly reporting you get a blow by blow acount , maybe too much information.
R2

[wjccghcc] 25/8/2015 09:05

Doesn't look like they've lost the mandate as they say its size may continue to be volatile. Looks more like the client adjusts the amount from quarter to quarter.

[boonkoh] 25/8/2015 09:01

Surprised for the fall. Part of the new mandate was temporary anyways and due to be unwound at some point. But they have lost the new mandate and more from one client, which is troubling.Fall seems really drastic though.

[wjccghcc] 25/8/2015 09:00

Seems a bit of an overreaction. Net, they're only down $1.05bn since the Mar year end position of $55.4bn. Agree it's currency for return so a higher fee rate, but a 22% fall in the value of the company when 50% of the mkt cap is net cash? I've been buying at 29.7p.

[bdroop] 25/8/2015 08:57

Yes. Stinging a bit this morning. Wincing but holding. Yields keep me interested..

[tmfmayn] 25/8/2015 08:37

brownie -- revenue and earnings will take a hit with this news. AIUI, fees are received based on a percentage of AUMe and not that dependent on whether the client makes a profit or not (though there may be performance fees if things go really well). If the client is unhappy with the investment performance and/or the associated fees paid, they tend to walk away.

[brownie69] 25/8/2015 08:33

Does the companies profits take a direct hit with the news today? ie are their fees dependant upon only making profits or will they get their fees regardless of whether the underlying funds make profits or not?

Thanks,

[bdroop] 25/8/2015 08:00

Ah! Apologies. Reliant on a small number of clients for their gains or setbacks...

[qs99] 25/8/2015 07:54

thanks.....will avoid for now, RNS was short / sweet and for an ignoramus like me, not clear!

[felix99] 25/8/2015 07:48

My thoughts are as they were when I sold out a while back - much promise but never seems to perform even when currency volatility should play into their hands to win new clients. Looks like they caught a bath with Chinese devaluation is my only thought of the huge swing? Must mean lovwer fees based on lower value FUM?

[qs99] 25/8/2015 07:45

bdroop, many thanks. i meant on the RNS this morning!

[bdroop] 25/8/2015 07:37

Quality ( and value ) share, with a long formed base around this level, reliant on US pension funds to mitigate currency fluctuation and risk. Which is what we're seeing a lot of right now. Healthy dividend too. My biggest holding currently, so I'm biased.

[qs99] 25/8/2015 07:11

anyone care to comment on this?

[topvest] 17/7/2015 17:06

Trading statement was fine. Patience needed. They have a trading statement every quarter (which is leading edge reporting), but you can't expect massive progress every quarter. Chill!

[felix99] 17/7/2015 14:33

I lost patience about 6 months ago with this. New client mandates seem to be always tomorrow and loads in ever growing pipeline. Even after dollar strength occurred which they said should trigger the flood gates for new business nothing of note happened.

They have been sailing supposedly downwind with dollar strength and then Greek currency volatility and yet winning new clients seems harder than ever.

Good luck but better things out there for me than being parked here.

[spooky] 17/7/2015 13:45

I added today as well; new client mandates should roll out over the next few months leading to positive news flow.

[wjccghcc] 17/7/2015 13:12

Added a few on the dip. I think patience is required. I'm happy with a 4.5% yield and a rock solid balance sheet in the meantime.

[bdroop] 17/7/2015 13:06

I'm happier holding money here than in bonds currently. Patience will be its own reward and feels a very safe stable entity to balance the portfolio up - especially with interest rate changes coming next year and unpredictable yields from fixed income. I admit though I was hoping to see a little gear shift this quarter for growth, but it doesn't put me off, if the rest of my allocations work well and this stays at this level I'll simply buy more!

[boonkoh] 17/7/2015 12:17

Very lukewarm trading statement today. The shares are not on that demanding a forward PE, with a good dividend, but clearly the market was expecting more progress.Whether the divergent monetary policies to come and more currency volatility will help Record this year remains to be seen.