Business Update

RNS Number : 4414S

Record PLC

07 November 2013

 



7 NOVEMBER 2013

RECORD PLC

BUSINESS UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that it intends to amend the fee scales applied to its existing Dynamic Hedging mandates.  These amendments are intended to align existing clients' fees with those being proposed to potential new clients.

The impact of these amendments on their own, without taking account of any potential new business, is estimated to be a reduction in management fees going forward of approximately £2.6 million on an annualised basis, with an on-going annualised impact on pre-tax profits of approximately £1.8 million.

Commenting on this announcement, Record's Chief Executive, James Wood-Collins, said "As anticipated, a higher level of new business enquiries and procurement processes has been accompanied by increased competitive activity.  We have taken the decision to recognise this in fee arrangements with existing and long-standing clients, as well as with potential new clients.  In doing so we are hopeful that growth in volume will more than compensate for reduced revenue margins."

Record also confirms that the Passive Hedging mandate announced in June has now commenced, and that in total Passive Hedging mandates of approximately $12 billion in assets under management equivalents have started since 30^th September 2013, the end of Record's first half year.  These mandates are expected to generate approximately £2.3 million in annualised management fees, with an on-going annualised impact on pre-tax profits of approximately £1.6 million.

Record will announce its half year results on 15^th November 2013 and its third quarter trading update on 17^th January 2014.

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For further information, please contact:

Record plc                                                                                   Tel: [phone]

James Wood-Collins, Chief Executive Officer

Steve Cullen, Chief Financial Officer

MHP                                                                                              Tel: [phone]

Nick Denton

John Olsen

Vicky Watkins

Notes to Editors

Record plc

Record is a specialist currency manager and provider of currency hedging services for institutional clients.  Founded in 1983, Record has established a market leading position as a currency manager.  Specifically, the Group has a leading position in managing Dynamic Hedging and Currency for Return for institutional clients.

The Group has three principal product lines:

-    Dynamic Hedging, formerly known as Active Hedging, where Record seeks to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain;

-    Passive Hedging, where Record seeks to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies; and

-    Currency for Return, formerly known as Absolute Return, in which Record enters into currency contracts for clients with the objective of generating positive returns.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 2007.

This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy, plans and objectives.  All statements in this document, other than statements of historical fact, including words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue", "project" and similar expressions, are forward-looking statements.

These forward-looking statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and assumptions that could cause the actual future results, performance or achievements of the Company to differ materially from those expressed in or implied by such forward-looking statements.

The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future business and strategy and speak only as at the date of this announcement.

The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement whether as a result of new information, future events or otherwise.

 

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