Record PLC 

Record PLC (LSE: REC) is an FTSE All-Share listed company based in the United Kingdom that specializes in currency and asset management. The company offers tailored solutions to institutional clients globally, focusing on managing currency risks in private assets, share classes, feeder funds, and other investment vehicles. This Report covers the Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 63.80

• Resistance near Current levels: REC’s stock price crossed the Resistance (R2) which was stated in the previous report on 30 December 2024 therefore, there could be a possibility that the stock might consolidate or decline from the current levels, considering overstretched valuation. Considering the market conditions and the price action, it is prudent to exit from the stock.

• Decline in Revenue: The company reported a decline in revenue to £41.6 mn in FY25, which dropped by approximately 8.0% compared to £45.4 mn the previous year. The decline was driven by lower performance fees, the loss of a large client, and a strategic change by another client. 

• Lower Management Fees: In FY25, the company reported management fees of £37.2 million, a decline of approximately 4.0% compared to £38.7 million in FY24. The drop was attributed to the restructuring of a large client mandate in FY24 and the discontinuation of a tactical interest rate swap portfolio in the first half of FY25.
• Decrease in Profit Before Tax: REC reported a profit before tax of £10.9 mn, down by approximately 15.5% compared to £12.9 mn the previous year. The decline was driven by higher operating expenses and increased finance costs.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

One Year Technical Price Chart (as of June 30, 2025). Source: REFINITIV, Analysis: Kalkine Group

Conclusion

In FY25, the company experienced a decline in revenue to £41.6 mn, reflecting an 8.0% decrease from the previous year. This was primarily due to lower performance fees, the loss of a key client, and a strategic shift by another client. Management fees also fell by 4.0% to £37.2 mn, influenced by the restructuring of a major client mandate and the discontinuation of a tactical portfolio. Profit before tax decreased by 15.5% to £10.9 mn, driven by higher operating expenses and increased finance costs. These results indicate a challenging year, with multiple factors contributing to the decline in financial performance. REC appears overvalued. For conducting the valuation, the following peers have been considered: Premier Miton Group PLC (LSE: PMI), Ninety One PLC (LSE: N91), etc

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Closing Market Price of GBX 63.80 as of 30th June 2025.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 30 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’