Record PLC (LSE:REC), the specialist currency and asset manager, has reported unaudited first-half 2022 results showing material profit growth and a diversification of products and revenues, supporting its strong financial position and a dividend increase.
For the six months ended 30 September 2022, Record saw revenue growth of 35% to £22.1mln, up from £16.3mln a year earlier, while profit before tax increased by 46% to £7.5mln from £5.2mln last year.
The company reported an increased operating profit margin in the first half of 34%, up from 32% a year earlier, while its basic EPS increased by 57% to 3.27p from 2.08p last year.
Record posted significant growth in management fees, up 18% on the prior half-year, and in performance fees, which surged by 468% underpinned by strong performance across all product strands. It said that ongoing diversification into higher revenue and more scalable products continues to support its operating margin and dividend growth.
The company increased its interim dividend by 14% to 2.05p per share, up from 1.80p per share last year.
Commenting on the results in the statement, Leslie Hill, Record's chief executive officer said: "Our growth trajectory continues as planned supported by solid product performance over the period and with good progress made in our plans for diversification.
"We have close engagement with our clients, listening to their concerns and understanding their needs - further reinforcing already strong relationships and leading to new ideas for future collaboration and opportunities for diversification."
He concluded: "The group remains well positioned financially, with increased cash generation and a strong balance sheet to support its future growth plans. The board remains confident in the strategy to deliver future growth, an outlook which is reflected by an increase in the interim dividend."
The company had a strong financial position, with shareholders' equity of £28.0mln at the period end, up from £25.2mln last year. The group's assets under management equivalent (AUME) in US dollar terms totalled $80.8bn as of 30 September 2022, down from $84.1bn a year earlier.