Record plc (REC) AI Stock Analysis

• Market Cap: £119.86M
• Dividend Yield: 6.74%
• Average Volume (3M): 311.95K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.42
• Revenue Growth: 4.14%
• EPS Growth: -4.64%
• Country: UK
• Employees: 98
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 0.02
• Shares Outstanding: 199,054,320
• 10 Day Avg. Volume: 478,439
• 30 Day Avg. Volume: 311,954
• PEG Ratio: 0.42
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.32
• 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, through its subsidiaries, provides currency and derivative management services in the United Kingdom, North America, Continental Europe, Australia, and internationally. It offers asset management services; derivatives, such as options, futures, cross-currency, and total-return swaps; fixed income instruments, including bonds and loans; ancillary services including cash and liquidity management, collateral management, and derivatives overlays. The company's clients include asset managers, pension funds, foundations, and other institutional investors. It distributes its products through direct sales, as well as through investment consultants. Record plc was founded in 1983 and is headquartered in Windsor, the United Kingdom.

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 margins and efficient cost management. Despite a decline in net income, the company maintains robust cash flow and a stable balance sheet with low debt levels, which supports long-term growth potential.

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
EBITDA	14.35M	15.26M	14.98M	11.73M	7.83M	7.91M
Net Income	9.49M	9.25M	11.34M	8.63M	5.35M	6.42M
Balance Sheet
Total Assets	33.17M	36.06M	36.74M	33.23M	33.09M	36.02M
Cash, Cash Equivalents and Short-Term Investments	14.30M	17.48M	14.50M	17.26M	19.78M	22.25M
Total Debt	542.00K	185.00K	979.00K	1.33M	638.00K	1.16M
Total Liabilities	5.43M	7.11M	8.45M	7.29M	6.29M	7.86M
Stockholders Equity	28.40M	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: 67.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 67.2 is above the 20-day moving average (MA) of 57.48, above the 50-day MA of 55.59, and above the 200-day MA of 55.80, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 80.78 is Negative, neither overbought nor oversold. The STOCH value of 89.32 is Negative, 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	£119.86M	13.42	33.84%	6.74%	4.14%	-4.64%
Sector *	60 Neutral	C$14.62B	6.20	20.17%	5.63%	26.93%	-38.21%
FEN		£58.37M	20.93	6.73%	2.89%	―	―
LIV		£81.19M	15.74	4.83%	9.28%	―	―
MERC	61 Neutral	£145.83M	42.25	1.83%	1.17%	35.36%	-153.97%
EMVC		£12.77M	―	-18.57%	―	―	―
PMI	58 Neutral	£119.90M	50.66	1.99%	7.95%	1.57%	―

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.