The firm increased its ordinary dividend 21% and announced a special dividend of 0.91p/share.
Companies: Record plc
Shares in Record jumped 13% on Friday after the currency manager raised its dividend by 21% and announced that it was paying a special dividend.
The company said AUME (assets under management equivalents) rose 10% during the period, with revenue of £23.9m, PBT of £8.7m, and net assets of £41.6m. Operating profit margin increased from 32% last year to 36%.
As a result, the Board is increasing its ordinary dividend by 21% and says it intends to return excess earnings to shareholders with a special dividend of 0.91p/share.
The company also said that thanks to its improved position, it was changing its capital policy and was considering returning c.£10m in excess capital to shareholders.
Edison said the results reflected positive market and currency moves in the company’s final quarter:
"While flows have fluctuated during FY17, the uncertain macro background is contributing to good levels of interest in Record’s currency management products, and this should also be supported by a lengthening period of positive performance from the currency for return products."
Chairman Neil Record said the current environment of uncertainty and change was set to continue and would provide opportunities to engage with clients, understand objectives, and develop solutions.
He added that since 2008/9, the Board has focused on building a more robust business, developing a diverse range of currency-related products, investing in people and infrastructure, and building a stronger balance sheet:
"This year, Record has reported its highest-ever AUME, increased revenues and earnings, and further growth in revenue diversification, with revenues from Passive Hedging now covering all overheads excluding variable remuneration. Our balance sheet is strong, with consolidated net assets of £41.6m, underpinned by own cash of £29.2 million, and comfortably in excess of our regulatory capital requirements."
