Record's profits dragged down by shrinking margins

UK currency manager Record saw full-year profits decline as a result of falling margins.

Despite revenues increasing 4% to £23.8m in the year ended 31 March, Record posted a 7% fall in pre-tax profits to £7.3m as its operating profit margin dropped to 31%, from 34%.

The Windsor-based firm saw earnings per share increase 4.12% to 3.03p.

Record stated that economic, political and market environments continued to "provide opportunities" for it to engage with current and potential clients across a "broad spectrum of products" but claimed that its continued investment in to "maintain innovation and service enhancement" had brought about the compression of its margins.

Neil Record, Record's chairman, said, "Although this financial year saw fewer political shocks than that preceding it, the world still seems to be in a period of rapid change - globalisation is being challenged and the threat of protectionism and trade wars is growing."

"In such times, financial markets, including foreign exchange markets, will continue to be impacted by ongoing geopolitical developments and instability," he added.

Record will pay a final dividend of 1.15p per share, giving a total ordinary dividend of 2.30p for the year, up from the 2.0p returned to investors in 2017, and will also pay a special dividend of 0.5p, down from the 0.91p paid last year.

As of 1150 BST, Record shares had lost 1.72% to 45.80p.