The information contained within
this announcement constitutes inside information as defined by the
Market Abuse Regulations (EU) No. 596/2014, which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
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considered to be in the public domain.
22 March
2024
RECORD PLC
Trading and business
update
Record plc ("Record", the "Company"
or the "Group"), the specialist currency and asset manager,
announces a trading and business update for the year ending 31
March 2024 ("FY-24").
Ahead of its financial year end, the
Company now reports updated AUME numbers as at
29 February 2024 alongside the results of a review of
certain business activities. This internal review has formed part
of the senior leadership transition, in preparation for the
previously announced appointment of Dr Jan Witte as CEO effective
from 1 April 2024.
AUME and Revenue Update
AUME has continued to grow over the
two-month period since the previous quarterly trading update (QE 31
December 2023), reaching US$101.3 billion at 29 February,
including net inflows of US$1.1 billion and exceeding
US$100 billion for the first time in the Group's history. This
represents a milestone for the Group and further reinforces the
already strong foundations upon which the Group can continue to
build. Consequently, the Group anticipates FY-24 revenues will be
approximately £45 million, in line with current market
expectations.
Technology Strategy Update
Over the last two years, the Group
has worked with external consultants in adding a new technology
platform ("R-Platform"). However, following analysis, the Board has
concluded that this project has not produced the scale of
improvement targeted and would require further meaningful
investment over a prolonged period to reach the level required, and
instead to focus the Group's resources on building out its internal
IT development expertise.
The Group has already started a
reorganisation programme focused on the restructure of its
Technology team. In this respect, the recent addition of senior
technology professionals, appointed to lead and build teams in both
Infrastructure and Development, brings the necessary knowledge and
expertise in-house, enabling greater focus for development in key
areas identified for near-term and sustainable growth, more
information for which will be articulated in the full year results
in June.
These changes have inevitably
resulted in some one-off reorganisation and professional costs,
estimated at £0.5 million. The decision to discontinue work on
the R-Platform will result in the impairment of the development
cost capitalised to date of approximately £1.9 million, which
will be treated as an exceptional cost in the FY-24
accounts.
The Board considers the above
decisions to be in the best interests of the business over the long
term and remains confident in the overall trajectory of the Group.
This is evidenced by the continued growth in AUME, revenue growth
of 75% delivered over the last two financial years to FY-23, and
the development of products planned for new business segments and
geographies, including the forthcoming launch of the Group's first
infrastructure fund.
Timing of CFO Appointment
Further to the announcement made on
15 January 2024, the Company confirms that Richard
Heading will join the business on 3 June 2024 for a period of
handover with Steve Cullen before joining the Board as a Director
and Chief Financial Officer on 1 July 2024, simultaneous with Steve
Cullen's retirement from the Board. This final paragraph is made
pursuant to Listing Rule 9.6.12R.
Jan Witte, Chief Executive Office
Elect, commented:
"I'm delighted to announce reaching
AUME of $100 billion, underlining the strong interest we
continue to see from both current and potential clients across our
product range.
"In the approach to my forthcoming
appointment as Chief Executive Officer, effective
1 April 2024, a review of the Group's current technology
projects and associated resources was enabled to ensure they remain
fit for purpose and continue to offer value-for-money for our
shareholders.
"As a result of the review, the
Board has decided that the level of further investment required in
order to complete the delivery of the R-Platform project in
particular is no longer a commercially optimal proposition. By
bringing the experience and expertise necessary to deliver
technology projects and enhancements in-house, we ensure a more
efficient and focused approach to future projects. I am pleased
with the progress already made by the business in this
respect.
"Further information on the changes
made above and future strategic plans will be given in the full
year results announced in June 2024."
For further information, please
contact:
Record
plc
+44 (0) 1753 852222
David Morrison - Chairman
Dr Jan Witte - Chief Executive
Officer Elect
Steve Cullen - Chief Financial
Officer
Buchanan +44
(0) 20 7466 5000
Simon
Compton record@buchanan.uk.com
Henry Wilson
George Beale