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Record Cuts Dividend After 64% Profit Jump

Record plc, the currency risk specialist, grew half-year operating profit by 64% but cut its interim dividend to 1.00p from 2.15p, switching to a payout tied to profit that leaves income-focused holders with less.

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Record's office lounge area with illuminated 'record' logo sign on the wall and colleagues walking past

Record plc (LON: REC) cut its interim dividend to 1.00p from 2.15p today, even as first-half operating profit jumped 64% to £7.3m. The currency risk manager published unaudited interim results before the London open.

Revenue rose 19% to £22.8m from £19.2m, and margin widened to 32.3% from 23.4%. Basic earnings per share reached 2.84p against 1.93p a year earlier.

REC.LSE

Part of the profit jump came from performance fees, charged when funds beat their targets. They rose to £2.2m from £0.8m. Management fees, the steadier charge on assets, grew 6% to £18.6m, while operating costs rose 3% to £15.2m.

Chief executive Jan Witte said the gain did not rest on performance fees alone.

Performance fees made a strong contribution, but, even excluding performance fees, revenue still grew faster than our costs. This is the operating leverage we have been working towards.

Jan Witte, Record

Grouped bars comparing Record plc management fees, performance fees and operating profit in the first half of the last two years
Record plc management fees, performance fees and operating profit, six months to 30 September, £ million. Source: Record plc interim results.

Assets under management, reported in US dollars, reached a record $130.3bn. That is 14% above the $114.6bn at 31 March 2026, helped by $12.7bn of net inflows.

Of that, $10.4bn went into the Absolute Return business, mostly FX Alpha mandates funded near the end of the period. Revenue from them therefore starts in the second half, so the inflows have yet to reach fees.

Profit after tax was £5.3m against £3.3m. The outlook supports expectations for the current year.

The dividend is where income holders will look. Record has adopted a policy of paying 40% to 60% of profit after tax attributable to equity holders, and the board currently expects around the mid-point for FY27.

Witte said the previous payout, over 90% of earnings for the last two years, was not sustainable for the long term, as a business needs to retain flexibility to invest in new growth. Planned uses of retained capital include broadening FX Alpha, private credit and private equity, people and technology.

The ex-dividend date is the 19th of November, the record date is the 20th of November, and payment follows on the 18th of December.

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