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Record sticks with its policy of paying special dividends

The specialist currency manager remains cash generative

Record PLC (LON:REC), the specialist currency manager, is to buck the trend by sticking with its practice of paying a special dividend.

The company declared a special dividend in respect of the year to the end of March of 0.41p, although this was lower than the previous year’s special dividend of 0.69p.

Nevertheless, with many other companies suspending dividend payments, the dividend payment is likely to catch the eye, especially as it augments a final dividend of 1.15p per share, which left the full-year pay-out unchanged at 2.3p.

Assets under management equivalents (AUME) at the end of March stood at US$58.6bn, up 2.3% on a year earlier, and included net inflows of US$4.6bn for the year.

In sterling terms, AUME rose 7.5% from a year earlier to £47.3bn.

Revenue grew 2.4% to £25.6mln from £25.0mln the year before but profit before tax dipped to £7.7mln from £8.0mln.

“The group remains cash-generative, well capitalised and completely independent of any of the Government's job retention or loan schemes,” said Neil Record, the chairman of the company that bears his name.

"Against this backdrop, it is pleasing to report the board's recommendation for payment of both a final ordinary dividend and also of a special dividend in line with the group's capital and dividend policy, and underlining the board's confidence in the strategic changes and in the growth opportunities anticipated ahead," he added.

Shares in Record rose 4.1% to 38p in early deals.

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