Record (REC) H2 2025 earnings summary

Executive summary

• Assets under management (AUM) remained above $100 billion, ending at $100.9 billion, with strong inflows and new business wins offsetting outflows.

• FY25 marked a year of management transition, with a new CEO, CFO, and board additions, including a new CIO.

• Despite client mandate losses and lower performance fees, the business delivered solid financial results and expanded its product offering.

• Strategic focus on three pillars: Risk Management, Absolute Return, and Private Markets, with notable product launches and pipeline developments.

• Disciplined cost management reduced operating costs by 6% to £30.8 million while funding key investments.

Financial highlights

• Operating profit fell 15% year-over-year to £10.7 million; operating margin declined from 27.8% to 25.6%.

• Total revenue decreased 8% year-over-year to £41.6 million, mainly due to lower management and performance fees.

• EPS increased 4% to 5.03 pence per share; ordinary dividend per share up 1% to 4.65 pence, representing 92% of EPS.

• Staff and technology costs reduced by 5% and 35% respectively, following tech team restructuring.

• Balance sheet remains strong with net assets of £29.1 million and regulatory capital surplus of £20.5 million.

Outlook and guidance

• FY26 revenue anticipated to grow in low single digits, with EPS expected to remain flat as the tax rate normalizes.

• Medium-term revenue and EPS growth expected from Private Markets fund deployments.

• Outlook highly dependent on timing and closure of large, complex deals in the pipeline.

• Commitment to maintaining a healthy ordinary dividend and strong balance sheet.