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Record PLC on Tuesday hiked its annual dividend, both ordinary and special, following a double-digit rise in profit and revenue for the period.
Shares in the Windsor, England-based currency and derivatives manager were 7.7% higher at 71.08 pence on Tuesday in London.
For the year ended March 31, Record reported a pretax profit of £10.9 million, up 78% from £6.2 million the year before, on revenue which grew 38% annually to £35.1 million, driven by growth in the group's managed assets, particularly in Record's higher revenue margin products, as well as a 37% increase in management fees.
As at March 31, Record's assets under management rose 3.7% year-on-year to $83.1 billion, from $80.1 billion, driven by net inflows of $2.4 billion, mainly from Passive Hedging and Dynamic Hedging clients.
Record declared a final ordinary dividend of 1.8 pence per share, bringing the total payout to 3.6p, up 47% from 2.3p the year before.
In addition, the group more than doubled its special dividend to 0.92 pence from 0.45p the year prior.
Looking ahead, Record said it is witnessing a fundamental change in the business, which is expected to transform the group's scale and resilience within the next few years. However, there are concerns that trading conditions will become very difficult, including high inflation, political instability and low or no economic growth.
‘We remain focused on building upon this momentum with further diversification of products and revenue streams as we move from a pure currency management specialist to having a broader offering in the alternative asset management space. Whilst our core skills in currency and derivatives will continue to provide an important and robust source of hedging revenue, our focus on innovating and collaborating on higher revenue-margin products will continue to increase our profitability, as evidenced this year by the increase in our operating margin,’ said Chief Executive Officer Leslie Hill.
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