Record PLC (LON:REC) maintained its ordinary dividend and declared an increased special dividend after assets under management reached their highest level over the past year.
The currency and derivatives manager said it continues to develop new products in collaboration with clients and by the end of this month will launch the Record EM Sustainable Finance Fund alongside one of the largest wealth managers in Switzerland.
A final ordinary dividend of 1.15p per share has been proposed to take the total ordinary dividend for the year ending 31 March to 2.30p per share, in line with the previous year. A special dividend for the year of 0.45p per share was declared, an increase from 0.41p 12 months ago.
Revenues were £25.4mln, while management fees grew 8% to £24.9mln.
As reported in April, assets under management equivalents (AUME) grew 23% to £58.1bn, or up 37% in dollar terms to US$80.1bn, including strong net inflows of US$9.7bn.
Net cash inflows from operating activities rose slightly to £6.8mln from £6.4mln and profit before tax was £6.2mln compared to £7.7mln a year earlier. The company said the drop was the short-term effect of the Coronavirus (COVID-19) pandemic and the change in leadership announced in February last year when Leslie Hill took over as chief executive and implemented a new strategic focus on growth, modernisation and succession.
“Implementing this change in strategy whilst adapting to the physical constraints arising from the impact of the pandemic have proved a challenge for most businesses, but one which our business has successfully risen to,” said chairman Neil Record.
“As expected, the more immediate financial impact from implementing our wide-ranging strategy in investing for growth has been a short-term decrease in profitability. However, looking forward, we start the year on our highest ever level of AUME, which is more diversified across our higher-margin products and provides us with an excellent platform for growth in FY-22.”
The chairman added: "Notwithstanding the short-term decrease in profitability and the challenging environment throughout the year, the group continues to be self-financing, cash-generative and completely independent with no external debt.
“Against this backdrop, the board remains confident that its change in strategic direction is the correct way forward for the long-term growth and success of the business, which is reflected in its decision to recommend payment of both a final ordinary dividend and also a special dividend in line with the group's capital and dividend policy.”