Record (REC) H1 2025 earnings summary

Executive summary

• Achieved record AUM of $106.0bn, up 4% from FY24 year-end and 25% year-over-year, driven by strong client demand and new product launches.

• Revenue for H1 FY25 was £21.1m, down 2% year-over-year, mainly due to a large client mandate restructure.

• Profit after tax rose 5% to £5.0m, with basic EPS up 4% to 2.58p; interim dividend maintained at 2.15p per share.

• Launched €1.1bn Infrastructure Equity Fund, marking a significant expansion in Asset Management offerings and a strategic milestone for future growth.

• Interim dividend maintained at 2.15p per share, reflecting confidence in the business and capital strength.

Financial highlights

• Operating profit was £5.6m, down 8% year-over-year; operating margin at 27%.

• Management fees decreased 3% to £19.0m; performance fees up 8% to £1.6m.

• Net cash position of £14.3m and shareholders' equity of £27.7m at period end.

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

• Cash generated from operations before tax was £5.6m; total dividends paid in H1 FY25 were £5.9m.

Outlook and guidance

• Full-year trading and management fee run rate expected to continue in H2 FY25; medium-term growth guidance to be updated at year-end.

• Trading for FY25 is in line with expectations; intention to maintain a progressive dividend policy.

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

• Elevated political and economic uncertainty expected to persist, potentially increasing demand for risk management services.