Record PLC interim results: record AUM, softer fees, dividend held
Record PLC has posted a mixed but strategically encouraging first half for FY26. Assets under management hit an all-time high of $110.3 billion, helped by market moves and inflows, while revenues and earnings eased year on year after prior mandate losses. The Board kept the interim dividend unchanged at 2.15 pence per share, signalling confidence as the business tilts towards higher margin products.
Key numbers at a glance
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| AUM | $110.3 billion | $106.0 billion | +4.3 billion |
| Total revenue | £19.2 million | £21.1 million | -9% |
| Management fees | £17.5 million | £19.0 million | -8% |
| Performance fees | £0.8 million | £1.6 million | -50% |
| Operating profit | £4.5 million | £5.6 million | -20% |
| Operating margin | 23.4% | 26.8% | -3.4pp |
| Profit attributable to Record plc shareholders | £3.7 million | £5.0 million | -25% |
| Basic EPS | 1.93 pence | 2.58 pence | -25% |
| Net assets | £27.8 million | £27.7 million | Flat |
| Cash and cash equivalents | £11.4 million | £9.9 million | +£1.5 million |
| Interim dividend | 2.15 pence | 2.15 pence | Maintained |
What drove the record AUM – and why it is not the same as revenue
Group AUM climbed to $110.3 billion, up 9% since March. The biggest swing factor was currency. About 60% of client assets are denominated in Swiss francs. As the Swiss franc strengthened against the US dollar, AUM rose when translated into dollars. That has minimal impact on Record’s Sterling revenues because fees are earned in underlying currencies.
Net flows were positive overall. By pillar, Risk Management AUM rose 12% to $106.4 billion. Absolute Return AUM fell to $2.8 billion, reflecting the wind-up of a client in late FY25. Private Markets AUM reported at period end was $1.1 billion, with the first $120 million deployment in the Record Infrastructure Equity fund completed after the balance date of commitments began to be put to work.
Segment highlights: steady core, growing solutions, and private markets momentum
Risk Management – the engine room with new growth areas
Risk Management fees slipped 1% to £14.3 million, mainly due to the loss of a multi-product client in late FY25, partly offset by AUM growth. Within this:
- Passive Hedging fees were £5.5 million, down 5%.
- Dynamic Hedging fees were £6.5 million, down 8%.
- Solutions for Asset Managers grew strongly – fees up 36% to £2.3 million, supported by a further $4.3 billion of inflows over 12 months and clients launching new funds.
Performance fees – the extra fees when strategies outperform agreed benchmarks – were £0.8 million and all came from Enhanced Passive Hedging mandates.
Absolute Return – softer after client wind-up
Fees in Absolute Return fell to £0.9 million (H1 FY25: £1.9 million), driven by FX Alpha down 50% to £0.4 million and lower Custom Opportunities revenue following the same client loss. This is the more volatile part of Record’s book and can see larger swings.
Private Markets – higher margin, long-dated revenue building
EM Debt remained stable at $1.0 billion of AUM, generating £2.3 million of management fees. The first $120 million deployment from the Record Infrastructure Equity fund went into Pattern Energy, with a second €150 million investment signed in a European transmission system operator. Management expects to deploy the €1.1 billion of commitments within three years. Fees here are long-term and at “substantially higher” rates than the traditional currency business, with capital typically locked for a minimum of 15 years. Infrastructure revenues are expected to lift in H2 FY26 as deployments feed through.
Earnings and margin: lower revenues, but costs well controlled
Total revenue fell 9% to £19.2 million. The decline was driven by last year’s mandate terminations and lower performance fees versus a strong comparative. Despite a 5% rise in average headcount to 104, operating costs were trimmed 4% to £14.8 million. Notably, the group bonus pool reduced to £1.6 million from £2.4 million, technology spend fell 10% as in-house development delivered efficiencies, and professional fees eased with private markets set-up work largely done.
Operating profit came in at £4.5 million with a 23.4% margin. Profit attributable to Record plc shareholders was £3.7 million and EPS was 1.93 pence. In simple terms – the income line dipped, but management held the line on costs and continued to invest for higher margin growth.
Cash, capital and dividends: balance sheet in good shape
Cash generated from operations before tax was £4.6 million. Cash and cash equivalents stood at £11.4 million at period end, up from £9.9 million a year earlier. Net assets were £27.8 million and the Group remains debt free with healthy regulatory capital coverage.
The Board declared a 2.15 pence interim dividend, unchanged year on year. Key dates: ex-dividend 20 November 2025, record date 21 November 2025, payment date 19 December 2025. Dividends paid during the half totalled £4.9 million.
Strategy in action: leadership additions and product expansion
Record is reshaping from a specialist currency risk manager into a broader specialist asset manager with more recurring, higher margin revenue streams. Two points stood out:
- Leadership – Dr Othman Boukrami joins the Record Currency Management Limited executive team from 1 December 2025, bringing deep expertise in emerging and frontier currencies. This should support growth in EM Local Debt and the Emerging Market Sustainable Finance fund.
- New products – progress continues on what is described as the world’s first Sharia-compliant Deep Tier Supply Chain Finance fund with a $1 billion target. Infrastructure equity commitments are being deployed, which should lift fee rates and duration.
Why this matters for investors
There is a near-term trade-off here. Headline AUM is up, but revenue dipped and EPS fell because some legacy mandates ended and performance fees normalised. That is the negative. The positive is that Record is now winning and deploying in businesses that earn more per pound of AUM for longer – notably Infrastructure Equity and EM Debt – while Solutions for Asset Managers is growing nicely.
FX is a live factor. With 60% of AUM in Swiss francs and only 25% in US dollars, dollar reporting can flatter AUM without moving Sterling revenues much. Keep that distinction in mind when reading headline AUM records.
Outlook and watch‑list for H2 FY26
- Timing of private markets closings – management says this is the main swing factor versus market expectations.
- Infrastructure revenue contribution – first deployment completed and a second signed should start to show in H2 FY26.
- Solutions for Asset Managers – momentum continues, and it is a higher growth sub-segment within Risk Management.
- Cost discipline – bonus accruals and technology savings helped margins in H1. Further office lease changes are expected to reduce occupancy costs.
My take
On balance I see this as a strategically positive update wrapped in softer near-term numbers. The maintained 2.15 pence dividend, solid cash position and record AUM offer support while Record pivots into higher margin, longer duration products. If the pipeline in Private Markets and the Sharia-compliant supply chain finance fund lands as planned, the revenue mix should improve meaningfully. Execution and timing remain the key risks to monitor.
