Record jumps after declaring special divi, changes to payout policy

Record posted double-digit growth in full-year revenues and earnings, which led management to boost its full-year dividend payout alongside a special payment for the full-year.

Company chairman Neil Record said: "This year, Record has reported its highest-ever assets under management equivalent, increased revenues and earnings, and further growth in revenue diversification, with revenues from Passive Hedging now covering all overheads excluding variable remuneration.

"[...] The Board has decided that conditions are now right for a change in our capital policy and is considering a return of approximately £10m of excess capital to shareholders, more details of which will be provided to the market shortly."

Record also highlighted the strength of the company's balance sheet, with consolidated net assets of £41.6m - and own cash of £29.2m - which he said was comfortably in excess of our regulatory capital requirements.

The specialist currency manager reported a 13% increase in revenues to £23.9m, which drove a 26% jump in profits before tax to £8.7m.

In underlying terms, profits were 13% ahead on the previous year to £7.9m.

Margins were also stronger, improving from 32% to 36% on an operating basis and from 33% to 34% in underlying terms.

Earnings per share improved from 2.55p to 2.91p.

The final dividend was set at 1.175p, for a full-year payout of 2.0p, up from 1.65p in 2016.

On top of that, Record declared a special dividend of 0.91p.

"For the current and future financial years, the Board intends to pursue a progressive dividend policy and to consider the return of excess earnings over ordinary dividends to shareholders, potentially in the form of special dividends.

"On this basis, such distributions to shareholders will be considered on a 'total distribution' basis, such that the total distribution for any one financial year will at least be covered by earnings, whilst always being subject to market conditions at the time, and to any further excess capital assessed as required by the Board."

Shares in the company finished the session 11.14% higher to 46.75p.