Record plc (REC) AI Stock Analysis

• Market Cap: £102.41M
• Dividend Yield: 8.52%
• Average Volume (3M): 224.81K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.40
• Revenue Growth: 4.14%
• EPS Growth: -4.64%
• Country: UK
• Employees: 98
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 0.05
• Shares Outstanding: 199,054,320
• 10 Day Avg. Volume: 247,694
• 30 Day Avg. Volume: 224,813
• PEG Ratio: -0.11
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ―

Record plc's strong financial health, characterized by high profitability and robust cash flows, forms the core of its positive stock outlook. Technical indicators show stable upward momentum, while fair valuation and high dividend yield enhance its investment appeal. Recent positive corporate events further reinforce the company's growth potential.

Record plc Business Overview & Revenue Model

Company Description

Record plc (REC) is a leading independent currency and derivatives management specialist. The company operates primarily in the financial services sector, offering currency management solutions that include currency hedging, currency for return, and currency overlay services. Record plc serves a diverse client base that includes institutional investors, financial institutions, and corporations, aiming to help them manage currency risk and enhance returns.

How the Company Makes Money

Record plc generates revenue primarily through management fees and performance fees associated with its currency and derivatives management services. The company's key revenue streams include fees for currency overlay management, where they assist clients in managing currency risk associated with international investments, and currency for return strategies, where they aim to generate additional returns through active currency management. Significant partnerships with institutional investors and financial institutions play a crucial role in expanding Record plc's client base and revenue opportunities. Additionally, market conditions, such as volatility in currency markets, can impact the demand for Record plc's services, influencing its earnings.

Record plc Financial Statement Overview

Summary

Record plc exhibits strong profitability with high gross and net profit margins. Despite a decline in net income, robust cash flow and a stable balance sheet underpin financial health, showcasing effective operations and low leverage risk.

Income Statement

Record plc exhibits strong profitability with high gross and net profit margins. The gross profit margin for the latest year is impressive, indicating efficient cost management. The company has maintained a healthy revenue growth rate over the years, with a revenue growth of 1.05% in the most recent year. Both EBIT and EBITDA margins are robust, showcasing operational efficiency. However, the net income declined in the latest year, which is a concern.

Balance Sheet

The balance sheet of Record plc is stable, with a low debt-to-equity ratio, indicating minimal leverage risk. The equity ratio remains strong, reflecting a solid financial structure. Return on Equity (ROE) is healthy, suggesting effective use of equity capital to generate profits. While the financial position is stable, slight decreases in total assets and stockholders' equity raise some concerns about long-term growth.

Cash Flow

Record plc demonstrates strong cash flow management with positive free cash flow growth and a high free cash flow to net income ratio. Operating cash flow exceeds net income, indicating strong cash-generating capabilities. The company has managed to sustain free cash flow growth, supporting financial flexibility. However, fluctuations in investing and financing cash flows warrant monitoring.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
45.27M	45.38M	44.91M	34.78M	25.45M	25.64M
	Gross Profit
45.05M	45.30M	44.08M	33.52M	24.10M	24.50M
	EBIT
14.03M	14.54M	14.18M	10.69M	6.87M	7.02M
	EBITDA
14.35M	15.26M	14.98M	11.73M	7.83M	7.91M
	Net Income Common Stockholders
9.49M	9.25M	11.34M	8.63M	5.35M	6.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.48M	17.48M	14.50M	17.26M	19.78M	22.25M
	Total Assets
36.06M	36.06M	36.74M	33.23M	33.09M	36.02M
	Total Debt
185.00K	185.00K	979.00K	1.33M	638.00K	1.16M
	Net Debt
-9.04M	-9.04M	-8.97M	-2.02M	-6.21M	-13.13M
	Total Liabilities
7.11M	7.11M	8.45M	7.29M	6.29M	7.86M
	Stockholders Equity
28.95M	28.95M	28.29M	25.93M	26.80M	28.03M
Cash Flow		Free Cash Flow
9.10M	12.24M	11.21M	10.99M	6.45M	6.15M
	Operating Cash Flow
9.13M	13.05M	12.44M	11.40M	6.87M	6.70M
	Investing Cash Flow
-3.25M	-3.36M	7.04M	-3.51M	-6.51M	1.11M
	Financing Cash Flow
-10.56M	-10.43M	-13.04M	-11.53M	-7.66M	-6.83M

Record plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:REC, the sentiment is Positive. The current price of 55.6 is above the 20-day moving average (MA) of 54.76, above the 50-day MA of 53.40, and below the 200-day MA of 56.10, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 57.11 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:REC.

Record plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REC	82 Outperform	£102.41M	11.28	33.39%	8.52%	4.14%	-4.64%
SDR	78 Outperform	£5.73B	13.98	9.48%	5.82%	0.72%	7.66%
JUP	74 Outperform	£467.13M	7.40	8.03%	5.90%	0.37%	―
PHNX	67 Neutral	£6.41B	―	-60.34%	8.39%	-6.33%	―
MNG	66 Neutral	$5.73B	30.42	-10.00%	7.93%	28.69%	-220.08%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%

Record plc Corporate Events

Record plc Senior Manager Acquires Shares Under Incentive Plan

Record plc has announced that Thomas Arnold, the Head of the Client Team, has acquired 409 ordinary shares in the company through the Share Incentive Plan at a price of 55.10 pence per share. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with those of its shareholders, potentially enhancing stakeholder confidence in Record plc’s strategic direction.

Spark’s Take on GB:REC Stock

According to Spark, TipRanks’ AI Analyst, GB:REC is a Outperform.

Record plc’s strong financial performance, marked by high profitability and robust cash flows, drives its positive stock outlook. The technical analysis suggests stable upward momentum, while fair valuation and high dividend yield add to its appeal. Recent corporate developments further support growth potential, resulting in a solid overall stock score.

To see Spark’s full report on GB:REC stock, click here.

Record plc Reports Stable Q4 Performance with Increased AUM

Record plc reported a stable fourth-quarter performance with assets under management (AUM) increasing to $100.9 billion, driven by favorable exchange rate changes despite modest outflows. The company earned £0.3 million in performance fees for the quarter, contributing to a total of £3.2 million for the year. Record plc remains confident in its market positioning, emphasizing its strong balance sheet and best-in-class risk management solutions amid high currency volatility.

Spark’s Take on GB:REC Stock

According to Spark, TipRanks’ AI Analyst, GB:REC is a Outperform.

Record plc’s strong financial performance and strategic corporate changes are the primary drivers of its positive outlook. High profitability margins, robust cash flow, and low leverage highlight its financial health. Technical indicators suggest a stable to slightly positive trend, while a fair valuation and high dividend yield make it attractive for investors. Recent corporate events further bolster the company’s growth potential.

To see Spark’s full report on GB:REC stock, click here.

Record plc Announces Share Acquisition by Senior Manager

Record plc announced that Thomas Arnold, the Head of Client Team, has acquired 438 ordinary shares in the company through the Record plc Share Incentive Plan at a price of 51.40 pence per share. This acquisition was disclosed in compliance with the Market Abuse Regulation, highlighting the company’s adherence to transparency and regulatory standards, which may impact stakeholder confidence and market perception.

Record plc Appoints Andreas Dänzer as Group CIO to Enhance Investment Strategies

Record plc has announced the appointment of Andreas Dänzer as Group Chief Investment Officer (CIO), a newly created role. Dänzer brings extensive experience in institutional investment, having previously served as CIO of the Pension Fund of Credit Suisse and held senior positions at UBS and Asga Pensionskasse. His appointment is expected to enhance Record’s currency strategies and alternative products, supporting the company’s diverse offerings and international client base. This strategic move is anticipated to bolster Record’s market position and drive continued growth.

Record plc Announces Share Acquisition by Senior Manager

Record plc, a company listed on the London Stock Exchange, announced a transaction involving its Share Incentive Plan. On February 27, 2025, Thomas Arnold, the Head of the Client Team, acquired 429 ordinary shares at a price of 52.34 pence per share. This acquisition was conducted in accordance with the Market Abuse Regulation and highlights the ongoing engagement of senior management with the company’s share incentive schemes.