Business Update

RNS Number : 7600D

Record PLC

01 April 2014

 



1 APRIL 2014

RECORD PLC

BUSINESS UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that it has been advised by a dynamic hedging client of its intention to terminate its mandate shortly.  This mandate would have been expected to generate revenues of approximately £0.7 million in the financial year ending 31^st March 2015, and to contribute approximately £0.5 million to pre-tax profits.

Record separately can confirm that the dynamic hedging mandate of approximately $600 million (with AuME quoted by convention in US Dollars) for which Record's selection, subject to contract, was announced on 14^th January 2014 commenced as anticipated during the first calendar quarter.  Record also saw inflows of approximately $20 million into the Record FTSE FRB10 Index Fund in the same quarter.

Commenting on business development opportunities, James Wood-Collins, Record's Chief Executive Officer, said "We continue to pursue a number of new business opportunities in particular in the United States, Switzerland and the United Kingdom.  In the United States specifically, some of the interest recently observed in currency hedging has weakened in the absence of pronounced US Dollar appreciation against major developed market currencies, although this interest could return quickly.  Currency management strategies continue to be of interest to more potential clients and consultants than has been the case historically, which we expect to lead to opportunities in return-seeking currency mandates as well as in hedging."

Record will announce its fourth quarter trading update on 23^rd April 2014 and its results for the financial year ended 31^st March 2014 on 17^th June 2014.

For further information, please contact:

Record plc                                                                                   Tel: [phone]

James Wood-Collins, Chief Executive Officer

Steve Cullen, Chief Financial Officer

MHP                                                                                              Tel: [phone]

Nick Denton

John Olsen

Vicky Watkins

Notes to Editors

Record plc

Record is a specialist currency manager and provider of currency hedging services for institutional clients.  Founded in 1983, Record has established a market leading position as a currency manager.  Specifically, the Group has a leading position in managing Dynamic Hedging and Currency for Return for institutional clients.

The Group has three principal product lines:

-    Dynamic Hedging, formerly known as Active Hedging, where Record seeks to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain;

-    Passive Hedging, where Record seeks to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies; and

-    Currency for Return, formerly known as Absolute Return, in which Record enters into currency contracts for clients with the objective of generating positive returns.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 2007.

This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy, plans and objectives.  All statements in this document, other than statements of historical fact, including words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue", "project" and similar expressions, are forward-looking statements.

These forward-looking statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and assumptions that could cause the actual future results, performance or achievements of the Company to differ materially from those expressed in or implied by such forward-looking statements.

The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future business and strategy and speak only as at the date of this announcement.

The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement whether as a result of new information, future events or otherwise.

 

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