Record (REC) H2 2026 earnings summary

Executive summary

• FY26 revenue declined 4% amid volatile currency markets and macro uncertainty, while AUM increased 14% to $114.6bn.

• Strategy execution expanded Private Markets and higher-yielding, longer-duration revenues; management expects FY27 revenue to increase.

• Disciplined cost management supported results as investment continued in strategic capabilities.

Financial highlights

• Revenue fell 4% to £40.1m, mainly reflecting lower management and performance fees.

• Operating costs declined 2% to £30.4m; operating margin was 25.0%, down from 25.6%.

• Profit after tax fell 23% to £7.0m, reflecting a return to a normalized tax rate; profit before tax declined 10%.

• EPS was 3.92p, down 22%; performance fees were £2.8m.

• Management fees represented 88% of revenue; private-markets growth partly offset lower fees in Risk Management and Absolute Return.

Outlook and guidance

• FY27 revenue is expected to increase; new mandates onboarding after year-end underpin a mild revenue J-curve.

• Near-completion mandates are expected to add £4m of annualized group revenue; more than nine months remained to secure further projects.

• FX Alpha AUM and revenue are expected to rise in FY27; two Dynamic Hedging mandates launched after year-end.

• The Infrastructure Equity Fund remains on track for full deployment within three years of launch; the remaining 65% of its initial commitment is expected to be deployed by end-2027.

• Medium-term ambition is for Absolute Return and Private Markets together to approach half of revenue, moving toward an equal split with Risk Management.