Record plc (LSE:REC) reported a 14% increase in assets under management to $114.6 billion for the year ended 31 March 2026, supported by new client mandates and favourable market conditions. Despite the growth in managed assets, revenue declined 4% to £40.1 million, while profit after tax fell 23% to £7.0 million as lower performance fee income and a return to a more normalised tax rate weighed on earnings.
The company reduced its final dividend to 1.45 pence per share, although it continues to maintain a relatively high payout ratio. During the year, Record also strengthened its leadership team and reported encouraging growth within its Solutions for Asset Managers division, alongside continued development of its private markets capabilities.
Management identified private markets, particularly infrastructure equity strategies, as a major area of future growth. The company believes these businesses have the potential to deliver higher margins and more diversified revenue streams compared with its traditional currency hedging operations. As part of this strategy, Record is investing in the expansion of Record Asset Management GmbH and the development of a broader private markets platform.
The board said capital is being directed toward initiatives that can create scalable, long-term revenue opportunities, even if earnings become less predictable in the near term. Management also highlighted a strong pipeline of prospective business and mandates nearing completion, which it expects to support current market expectations for FY27. The company continues to focus on risk management, absolute return strategies and private markets expansion as it seeks to evolve into a more diversified alternative asset manager.
The company’s outlook is supported by a strong valuation profile, solid financial stability and an attractive dividend yield. Strategic investments and corporate developments provide additional support for long-term growth prospects, although technical indicators continue to suggest a weaker near-term market trend.
More About Record plc
Record plc is a specialist asset management company that originally built its business around currency risk management and customised hedging solutions for institutional investors. Over more than four decades, the company has expanded its capabilities beyond foreign exchange management into areas including FX alpha strategies and absolute return investment products.
More recently, Record has focused on broadening its offering into private markets, with investments spanning infrastructure equity and sustainable finance opportunities in emerging markets. The group’s strategy is centred on creating higher-margin, scalable revenue streams while maintaining its expertise in risk management and institutional investment solutions.
Leave a Reply