Record plc (LON:REC) continues to beat expectations with another robust quarter, culminating in assets under management equivalent (AUME) reaching an all-time high of nearly $116bn. According to the latest research note from Panmure Liberum, the asset and currency management specialist closed calendar 2025 with significant momentum across core and specialist products, demonstrating the strength of its diversified business model.
Panmure Liberum analyst Rae Maile, who authored the report, described Record’s recent performance as highly encouraging, particularly with net inflows outperforming expectations. “The company had a strong final quarter to calendar 2025 with AUM ending the period at another new record at almost $116bn,” Maile wrote, adding that the flows were “good both in the core Passive Hedging product but also in FX Alpha, with continued progress too in Solutions.”
Net flows for the quarter reached $3.3bn, well ahead of Panmure Liberum’s estimate of $0.2bn. The Passive Hedging strategy accounted for $2.4bn of these inflows, while the higher-margin FX Alpha strategy brought in $0.9bn. These inflows contributed to a 15% year-on-year increase in AUME.
Notably, investment performance was also strong, helping drive additional performance fees. Record earned £1.6m in performance fees during the quarter, outpacing the £1.3m from the same period last year and exceeding the analyst’s estimate for the entire second half of FY26.
Maile noted, “Performance fees are not an overly important part of the investment case for Record, certainly compared with others in the sector, but their presence is a very clear indication that the company is delivering for its clients what it said it could.”
Despite this progress, the shares remain attractively valued. Record trades on a forward P/E of just 10x based on Panmure Liberum’s revised FY27E estimates, and offers an estimated dividend yield of 8.6% — an attractive proposition for income-seeking investors.
FY25 Operational and Financial Highlights
- AUME: $115.9bn (up 15% YoY)
- Net flows: $3.3bn, best in two years
- Performance fees: £1.6m in Q3/26 alone
- FY25 Sales: £42m
- EBIT: £10.3m
- Dividend per share: 4.7p maintained
- Cash position: Net cash of £4.7m including leases
Record’s growth strategy includes new initiatives not yet fully captured in earnings forecasts, such as the recently launched Infrastructure fund and the Kore Potash financing project. As Maile points out, “these are only the projects and ventures which the company has so far discussed in public,” suggesting more developments are on the horizon. Crucially, associated costs are already included in Panmure Liberum’s forecasts, providing potential upside as revenue realisation catches up.
Final Thoughts
Record plc has delivered a standout quarter, with significant growth in AUME, solid performance fees, and a healthy dividend yield. Its share price, however, appears yet to fully reflect this momentum. With strategic diversification into higher-margin services and consistent delivery on client promises, the company offers an attractive blend of value and growth potential in the asset management space.
