Record PLC (LSE:REC) said in its full-year results it is evolving into something more than a currency management specialist.
The year to the end of March 2022 saw revenue surge to £35.2mln from £25.4mln the year before while profit before tax jumped to £10.9mln from £6.2mln.
Growth in management fees of 37% drove the reversal of the short-term reduction in profitability seen in the previous year, with Record's operating margin increasing to 31% from 24% last year.
Assets under management equivalents (AUME) rose by 4% to US$83.1bn over the course of the year, helped by net inflows of US$2.4bn.
The board announced a final dividend of 1.8p, up from 1.15p the previous year, taking the full-year payout to 3.6p (2.3p). The board has also recommended a special dividend for the year of 0.92p, just over double what it paid last year (0.45p).
"We remain focused on building upon this momentum with further diversification of products and revenue streams as we move from a pure currency management specialist to having a broader offering in the alternative asset management space. Whilst our core skills in currency and derivatives will continue to provide an important and robust source of hedging revenue, our focus on innovating and collaborating on higher revenue-margin products will continue to increase our profitability, as evidenced this year by the increase in our operating margin,” said Leslie Hill, the chief executive officer of Record.
Neil Record, the company’s chair, said the fundamental change in the business “has the potential to transform for the better Record's scale and resilience within the next few years”.
“By contrast, I am concerned that the current economic, financial and geopolitical pressures facing Western democracies may well see a prolonged period of very difficult conditions - high inflation; low, zero or negative growth; overstretched fiscal positions; and the likelihood of political instability. One way or another, these conditions may well impact on Record's growth prospects, but my current judgement is that our growth will outweigh the headwinds imposed on us by these global economic problems,” he added.
Shares in Record rose 9.1% to 72p on the back of the results.