Recorded chat room
The company is sitting on cash of £29.2m of which all it needs to satisfy regulatory requirements is around £9m.Record is paying out a £2m special dividend for its last financial year, or 0.9p a share.
However, 85% of this fund is allocated to “Passive Hedging”, a product that earns Record the lowest amounts, in terms of basis points.The divi up 40%, and shows their commitment to returning excess cash to shareholders. Since then it has usually been 40 and the balance has been net buys.As a newcomer, is this a cyclical feature or are we entering new water? From Shares Magazine yesterday; Make hay from currency fluctuations with Record Would you like to own shares in a company that is sitting on piles of cash, is prepared to return it you at regular intervals and has also been growing at a fair lick? The company helps large institutional investors such as pension funds reduce the risk of losing money due to changes in the values of currencies.The shares purchased by the company will be cancelled.If profits remain the same as last year the impact of cancelling these shares by the company means that the EPS will increase by 10%.But you don’t need to know the intricacies of how currency BROKER SAYS: markets work to realise that Record is good investment; it’s clear in the numbers.
Record’s results for year ending March 31 2017 show a business on the up and up.
As an aside, REC looks at long last to have turned the corner.
Its business should do well in these volatile markets and if it pays out all its Earnings in dividends we will be getting a dividend around 7% and still the prospect for further share repurchases. I would guess that is not tax efficient for the big holders, so they have opted for a tender offer instead.
It also offers dynamic hedging, or active currency management, where the firm decides if a currency movement is going to result in a loss for its client or not.
The company’s chief executive James Wood-Collins says ‘the business thrives on turbulence, uncertainty and political change which all impact the currency markets’.
That is 3 basis points or 0.03% of allocation fund size., down from 4 basis points.