Record - Positive outlook for FY24

Record continues to deliver on its diversification and modernisation strategy, reporting FY23 revenues of £44.7m, up 27% y-o-y. Excluding exceptionally strong performance fees of £5.8m, revenues grew by a solid 12% with all areas contributing. Additionally, in the Q124 trading update, Record earned performance fees of £0.5m, implying a run rate above our forecast for FY24. During Q124, net outflows of $2.5bn were recorded, predominantly in passive hedging. Our estimates are broadly unchanged since the passive hedging product is a lower fee earner. The strong pipeline of opportunities in Asset Management implies a material contribution to operating profit in FY24 and beyond. We introduce FY25 revenue and diluted EPS expectations of £52.0m and 6.97p, respectively, conservatively factoring in no major new asset management wins in FY25.