Record (REC) H1 2025 earnings summary

Executive summary

• AUM reached a record $106.0bn, up 3.7% since FY24 year-end and 25% year-over-year, with growth across products.

• Revenue fell 2% to £21.1m, mainly due to a large client mandate restructure; operating margin declined to 26.8%.

• EPS rose 4% to 2.58p and PAT attributable to shareholders increased 5% to £5.0m; the interim dividend remained 2.15p per share.

• The €1.07bn Infrastructure Equity Fund launched, expanding long-term Asset Management offerings.

Financial highlights

• Management fees decreased 3% to £19.0m; performance fees were £1.6m, versus £1.5m in H1 FY24.

• Operating profit fell 8% to £5.6m and profit after tax declined 10% to £4.3m.

• Administrative expenses rose 2% to £15.4m, reflecting higher salary and professional fees.

• Net cash was £14.3m and shareholders’ equity was £27.7m at period end.

Outlook and guidance

• H1 management fee and administrative expense run rates are expected to continue in H2 FY25; performance fees are not guided and are expected below the significant H2 FY24 level.

• FY25 trading is in line with expectations; medium-term growth guidance is expected at year-end.

• Infrastructure Fund commitments are to be deployed over three years, with management fees at the upper end of historical ranges.

• A private credit fund is a potential next addition to the focused product range.