Record plc (REC) AI Stock Analysis

• Market Cap: £98.62M
• Dividend Yield: 8.85%
• Average Volume (3M): 144.39K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.44
• Revenue Growth: 4.14%
• EPS Growth: -4.64%
• Country: UK
• Employees: 97
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management Services
• EPS (TTM): 0.05
• Shares Outstanding: 199,054,320
• 10 Day Avg. Volume: 111,124
• 30 Day Avg. Volume: 144,388
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.22
• Price to Cash Flow (P/CF): 8.60
• P/FCF Ratio: 0.00
• 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

Record plc demonstrates strong financial performance with efficient cash flow management and a stable balance sheet, contributing significantly to the overall score. Valuation metrics indicate potential undervaluation, and recent corporate events are positive, enhancing growth prospects. However, technical indicators show mixed signals, suggesting caution in terms of stock momentum. The company's robust dividend yield adds an attractive income aspect for investors.

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 shows strong financial health with efficient operations, robust cash flow generation, and a stable balance sheet. The company maintains high profitability margins and low leverage, positioning it well for sustained growth. While net income has faced some recent declines, the company's ability to generate cash remains a key strength. Continued focus on revenue and income growth will be essential to maintain its strong financial standing.

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

Record plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 52 is above the 20-day moving average (MA) of 51.98, above the 50-day MA of 51.99, and below the 200-day MA of 58.71, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:REC.

Record plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REC	79 Outperform	£98.62M	10.26	33.39%	8.85%	4.14%	-4.64%
Sector *	64 Neutral	$13.88B	10.79	9.29%	4.15%	17.66%	-7.41%

Record plc Corporate Events

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.

Record plc Senior Manager Acquires Additional Shares

Record plc has announced that Thomas Arnold, a senior manager and head of the client team, has acquired 432 shares in the company at a price of 52.10 pence per share. This transaction, conducted under the Record plc Share Incentive Plan, signifies a strategic maneuver in enhancing senior managerial stakeholding, potentially aligning managerial interests with shareholder value and impacting the company’s governance dynamics.

Record plc Reports Strong Q3 with New Fund Launch and Increased Performance Fees

Record plc reported a strong third quarter, highlighted by the successful launch of their new Infrastructure Equity Fund and an increase in performance fees due to higher currency volatility. While net asset flows were neutral, the company experienced significant inflows in its Hedging for Asset Managers offering, maintaining stable management fee expectations and forecasting revenue to surpass previous estimates. The Group’s assets under management (AUM) decreased due to currency fluctuations, specifically the strengthening of the US dollar against the Swiss franc, which impacted their USD-denominated AUM.

Record plc Executive Increases Stake Through Share Incentive Plan

Record plc announced that Thomas Arnold, Head of the Client Team, has acquired 419 ordinary shares under the company’s Share Incentive Plan at a price of 53.70 pence per share. This acquisition, disclosed under the Market Abuse Regulation, highlights executive participation in the company’s equity, potentially indicating confidence in Record plc’s future performance and strategic direction.

Record plc Senior Managers Acquire Shares under Incentive Plan

Record plc announced that senior managers acquired shares through the company’s Share Incentive Plan. This notification highlights the acquisition of shares by Thomas Arnold and Shaesta Wahedally, signaling confidence in the company’s future prospects. The transactions were conducted on the London Stock Exchange, with an acquisition price of 54 pence per share.

Record plc Executive Acquires Shares Under Bonus Scheme

Record plc has announced that Thomas Arnold, the Head of Client Team, has acquired 20,431 Ordinary Shares at a price of 62.21 pence per share under the Group Bonus Scheme. This transaction, in compliance with the UK Market Abuse Regulation, signifies an internal reinforcement of value, potentially aligning executive interests with company performance, and may indicate confidence in Record plc’s future prospects.