Annual results announcement: 12 months ended 31 March 2020

PRESS RELEASE

Record plc

19 June 2020

FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2020

Record plc, the specialist currency manager, today announces its audited results for the year ended 31 March 2020.

Resilient, in-line performance; positive growth outlook with final dividend and special dividend declared

Financial headlines:

• Revenue growth of 2.4% to £25.6m (2019: £25.0m)

• Performance fees for the year of £1.8m (2019: £2.3m)

• Profit Before Tax (PBT) of £7.7m (2019: £8.0m)

• Operating profit margin decreased to 30% (2019: 32%)

• AUME1$58.6bn at 31 March 2020 (up 2.3% for the year), including net inflows of $4.6bn for the year

• AUME £47.3bn at 31 March 2020 (up 7.5% for the year)

• Robust financial position with increased net assets of £28.2m at 31 March 2020 (2019: £27.4m)

• Basic EPS of 3.26p per share (2019: 3.27p)

• Proposed final ordinary dividend of 1.15p per share; total ordinary dividend for the year of 2.30p

  per share (2019: 2.30p)

• Special dividend for the year of 0.41p per share (2019: 0.69p)

Key developments:

• Change of leadership during the year with further senior management appointments, including a new Head of Global Sales

• Strategy focused on accelerated and diversified growth and planning for generational change

• Proven operational resilience and financial independence maintained through the current covid-19 pandemic

• Development of currency-based ESG/Impact offeringbuilds on Record's commitment tosustainability principles

• Expansion of Record's office in Switzerland through the strengthening of the client and research teams based in Zürich

• Economic, political and market environments provide opportunities to engage with current and potential clients across a broad spectrum of products and geographies

1

As a currency manager Record manages only the impact of foreign exchange and not the underlying assets, therefore its "assets under management" are notional rather than tangible. To distinguish this from the AUM of conventional asset managers, Record uses the concept of Assets Under Management Equivalents ("AUME") and by convention this is quotedin US dollars.

Commenting on the results, Neil Record, Chairman of Record plc, said:

"This financial year has seen an important change in strategic focus for the Group coupled more latterlywith extreme market volatility and disruption to working practices linked to the covid-19 pandemic.

"The change in leadership announced in mid-February shows our intent to build the business with new

CEO, Leslie Hill leading our drive to accelerate growth building on Record'sstrong market positioning, long track record and depth of institutional client base. Further senior management hires, including a new Head of Global Sales, demonstrate our commitment to delivering diversified growth well into the medium term.

"Covid-19 has been unprecedented in its impact on the business community, the global economy, and on society as a whole. Through such extreme conditions our business has proved its resilience and adaptability, through the inbuilt operational flexibility and the disciplined commitment of our hugely talented employees. The Group remains cash-generative, well capitalised and completely independent ofany of the Government's job retention or loan schemes.

"Against this backdrop, it is pleasing to report the Board's recommendation for paymentof both a final ordinary dividend and also of a special dividendin line with the Group's capital and dividend policy, and underlining the Board's confidence in the strategic changes and in the growth opportunities anticipatedahead."

Analyst presentation

There will be a presentation for analysts at 9.30am on Friday 19 June 2020 held via a Zoom call. Please contact the team at Buchanan [e-mail] further details. A copy of the presentation will be made available on the Group's website atwww.recordcm.com.

For further information, please contact:

Record plc[phone]

Neil Record - Chairman

Leslie Hill - Chief Executive Officer

Steve Cullen - Chief Financial Officer

Buchanan[phone]

Giles Stewart

Victoria Hayns

Henry Wilson

Consolidated statement of comprehensive income

Year ended 31 March

Revenue

Cost of salesGross profitAdministrative expenses Other income or expenseOperating profitFinance income Finance expenseProfit before taxTaxation

Profit after tax

Total comprehensive income for the year

Profit and total comprehensive income for the year attributable toOwners of the parent

Non-controlling interests

Profit and total comprehensive income for the year

Earnings per share for profit attributable to the equity holders of the Group during the year

Basic earnings per share Diluted earnings per share

2020£'000	2019£'000
25,563 (255)	24,973 (385)
25,308 (17,741) 82	24,588 (16,704) (8)
7,649 146 (58)	7,876 135 (22)
7,737 (1,365)	7,989 (1,559)
6,372	6,430
6,372	6,430
6,420 (48)	6,430 -
6,372	6,430
3.26p 3.26p	3.27p 3.25p

Consolidated statement of financial position

As at 31 March

Non-current assetsIntangible assets Right-of-use assets

Property, plant and equipment Investments

Total non-current assets Current assets

Trade and other receivables Derivative financial assets

Money market instruments with maturities > 3 months Cash and cash equivalents

Total current assets Total assets Current liabilities

Trade and other payables Corporation tax liabilities Lease liabilities Financial liabilities Derivative financial liabilitiesTotal current liabilities Non-current liabilitiesDeferred tax liabilities Provisions

Lease liabilities

Total non-current liabilities Total net assets

Equity

Issued share capital Share premium account Capital redemption reserve Retained earnings

Equity attributable to owners of the parent Non-controlling interests

Total equity

2020£'000	2019£'000
470 1,175 751 2,472	288 - 761 1,112
4,868	2,161
8,704 193 7,958 14,294	7,562 164 10,735 12,966
31,149	31,427
36,017	33,588
(3,009) (601) (544) (2,191) (610)	(2,736) (692) - (2,621) (109)
(6,955)	(6,158)
(86) (200) (615)	(29) - -
(901)	-
28,161	27,401
50 2,259 26 25,694	50 2,243 26 25,022
28,029	27,341
132	60
28,161	27,401

Chairman's statement

"Writing thisstatement in the middle of the Coronavirus lockdown is a timely reminder both of the value of our asset-based revenue model, and of the importance of adaptability."

Neil Record

Chairman

2020 will be remembered as the Coronavirus year. It is also the year in which Record plc made some important decisions for its future.

In February 2020, we announced that James Wood-Collins was stepping down as CEO, and that he would be replaced by our Client Team Director, Leslie Hill.

Before I describe the thinking behind this change, I want to pay tribute to the efforts that James devoted to Record in his nine yearsin this role. Under James's leadership, we re-established our equilibrium following the Global Financial Crisis, and diversified our range of currency market products and services.

Early in the year, the Board took the view that two imperatives were emerging at Record: that it was becoming increasingly vital to orientate the firm for growth, and it was also becoming increasingly vital to establish succession in the most senior executive posts at Record.

The Board took the view that Leslie Hill, 64, our veteran Client Team Director, with 27 years already completed at Record, had the skills and vision to deliver both growth and succession. This change was facilitated by the arrival of a new Client Team Director,

Sally Francis-Cole, who comes with 20 years' experience in FX sales.

Leslie sets out her plans in more detail in her statement.

Financial overview

Strong net inflows of $4.6 billion for the year (2019: outflows of $4.5 billion) helped drive the 2.3% increase in our final AUME of $58.6 billion, despite the negative impact on markets from covid-19 and the consequent decrease of $4.5 billion in our AUME in the final quarter.

Revenues increased by 2.4% to £25.6 million (2019: £25.0 million), operating profit fell slightly to £7.6 million (2019: £7.9 million) and earnings per share remained broadly flat at 3.26 pence (2019: 3.27 pence).

Further information on AUME flows and financial results can be found in the Operating review and Financial review sections.

Group strategy

I indicated above that the Board is prioritising growth and succession in its strategy. This will mean building on our existing strong base of current business, including a review of the products and services that Record offers to its clients, and an assessment of the way in which we deliver those products and services.

Record is no longer a young company. At 37 years old, we have built up a modus operandi which is reliable and effective. However, technological changes, FX market changes and the changing nature of our client base means that the time has come to re-think how we deliver our services in an increasingly technologically dominated market.

Under Leslie's new leadership, we will embrace change to deliver our goals.

Capital and dividend

Our capital policy aims to ensure retained capital broadly equivalent to one year's worth of future estimated overheads (excluding variable remuneration), in addition to capital assessed as required for regulatory purposes, for working capital purposes and for investing in new opportunities for the business.

Our dividend policy targets a level of dividend which is at least covered by earnings and which allows for sustainable dividend growth in line withthe trend in profitability. It is also the Board's intention, subject to financial performance and market conditions atthe time, to return excess earnings over ordinary dividends for the financial year and adjusted for changes in capital requirements, to shareholders, normally in the form of special dividends.

The Board is recommending a final ordinary dividend of 1.15 pence per share (2019: 1.15 pence), with the full year ordinary dividend at 2.30 pence, which is equivalent to the full year ordinary dividend in respect of the prior year (2019: 2.30 pence). The interim dividend of 1.15 pence per share was paid on 27 December 2019, and the final ordinary dividend of 1.15 pence per share will be paid on 11 August 2020 to shareholders on the register at 3 July2020, subject to shareholders' approval.

The Board has considered at length the current market conditions, including uncertainties surrounding global trade, Brexit and the high likelihood of a global recession arising from the Coronavirus. Such a high level of uncertainty brings with it the need for a measured and prudent approach to ensuring the business retains sufficient capital and liquidity to withstand any negative impacts arising, whilst also allowing the business to continue to invest in implementing its new strategy.

Against this backdrop, the Group has assessed its capital requirement both in terms of the current market conditions and also its anticipated costs and regulatory capital required for the current financial year, which has resulted in an increase to capital required in line with its policy. The net increase in capital required is equivalent to 0.55 pence per share and consequently the Board is