Record : Interim results for the six months ended 30 September 2021

Modernisation and diversification… building on our strong core

Record plc

Interim Report 2021

Six months ended 30 September 2021

About us

Our purpose: to deliver innovative, thought leading and practical solutions to the needs of currency market users and investors, while maintaining independence and integrity.

We are an independent, specialist currency and derivatives manager with over 38 years of experience which has allowed us to develop a deep and fundamental understanding

of the risk and reward opportunities within those markets. Record plc has a premium listing on the Main Market

of the London Stock Exchange.

		Record plc Interim Report 2021	1
Our highlights
AUME1 at period end
	Contents
$84.1bn
	Our highlights	1
		Chief Executive Officer's statement	2
H1‑212: $65.9bn, FY‑21: $80.1bn		Interim management review	4
		Statement of Directors' responsibilities	12
Earnings per share		Independent review report	13
2.08p		Financial statements	14
	Notes to the consolidated financial statements	18
	Information for shareholders	IBC
H1‑21: 1.10p, FY‑21: 2.75p

Client numbers at period end

89

H1‑21: 74, FY‑21: 89

Revenue

£16.3m

H1‑21: £11.8m, FY‑21: £25.4m

Profit before tax

£5.2m

H1‑21: £2.6m, FY‑21: £6.2m

Ordinary dividend per share

1.80p

H1‑21: 1.15p, FY‑21: 2.30p

1. As a currency and derivatives manager, Record manages only the impact of foreign exchange and not the underlying assets, therefore its "assets under management" ("AUM") are notional rather than real. To distinguish this from the AUM of conventional asset managers, Record uses the concept of Assets Under Management Equivalents ("AUME").
2. H1-21indicates the six-month period to 30 September 2020. H2-21 indicates the six-month

period to 31 March 2021. FY-21 indicates the financial year ended 31 March 2021.

2 Record plc Interim Report 2021

Chief Executive Officer's statement

We continue with our inexorable move to a more technologically agile and diversified business.

Leslie Hill

Chief Executive Officer

We are expanding our offering to clients and yet remaining a go-to provider for currency and derivative products and solutions. We will always have currency as our core competence, in all its forms, but as you will see reading below we are branching out, as promised. This is a critical part of our future success.

Progress against strategy

Our EM Sustainable Finance Fund, launched with our client UBS in June of this year, continues to develop its Frontier Currency and Sustainable Bond portfolios and interest in the area is growing.

Our total current Frontier and EM currency portfolio stands at $3.3 billion and we are starting to engage with other clients who need help with innovative solutions in this area, in the realms of both debt and currency.

Our European business, particularly in Germany, continues to grow and our first material German Dynamic Hedging mandate started this summer. We set up our German subsidiary, Record Asset Management GmbH with offices in Frankfurt, in the final calendar quarter of 2020 and applied for a BaFin licence earlier this year. Our Head of Sales

Dr Jan Witte is spearheading these efforts, supported by a growing European team based out of Zurich, Amsterdam and Frankfurt.

Most promisingly, we anticipate launching a Luxembourg‑based Municipal Loan Fund with Universal‑Investment as Fund Manager by the end of the financial year; this fund will combine European Municipal Loans managed by our Fixed Income and Derivatives teams with European trade receivables provided by our collaboration partners Siegfried and VTeam. This new development will expand our range of products and further increase the scalability and diversification of our revenue sources.

Modernisation

This work continues at a strong but measured pace, with initiatives to build a robust and secure data storage warehouse and enhanced FX execution capabilities engaging our growing in‑house team and working in conjunction with subject matter experts. This is all part of bringing the latest technology and design approaches into the heart of our business, definitely a journey not a "destination" but one that I am confident will continue to yield new revenue sources through new offerings, as well as cost savings by continuing to deliver efficiencies. The house is

not finished and we are working away covered in dust with all the windows open, but we have a good architect and a great building team whom we try and give all the TLC they need to make the place a home that all our clients, old and new, want to visit, and never leave.

AUME at period end
$84.1bn	+5%
H1‑21: $65.9bn, FY‑21: $80.1bn

Succession

We have made some new appointments and promotions in the last year, and plan to give more opportunity to our young talent. The addition of our London office will help to continue to attract and retain talent, while retaining some of our most experienced directors as consultants during the transition to ensure stability and resilience. This is one of the best parts of my job, getting the right people in the right jobs and then supporting and mentoring them, although to be fair they teach me just as much.

We also continue to award equity options through our JSOP and share option schemes and these are proving popular with staff. In our recent appointments, Matt Hotson and Krystyna Nowak, we have two new Non-executive Directors who are bringing a very interesting strategic dynamic to the Board, and this will be very helpful to me going forward.

Financial results and dividends

The benefits of our change in strategy are now starting to be reflected in our financial performance. Our push for diversification into higher-margin and more scalable products and revenue streams has increased revenue by

38% and almost doubled our pre-tax profits, with our operating profit margin increasing to 32% from 22% versus the same period last year. Further financial information can be found in the Financial review on pages 9 to 11.

Notwithstanding the challenges arising from both covid-19 and our change in strategy over the last 18 months, neither our capital management policy nor our dividend policy has changed. The Board continues to remain confident in the ability of the business to deliver on its planned strategy and to achieve further growth, and has decided to pay an increased interim dividend of 1.80 pence per share (HY21: 1.15 pence per share) on 30 December 2021 to shareholders on the register at 3 December 2021.

Record plc Interim Report 2021

3

Outlook

I am very aware of the need for revitalisation, evolution and change while we keep what is so good about us; our special expertise, our integrity and our experienced staff. The marriage of old and new is a delicate and subtle art but one that, as we get it right, and I believe we are, will yield exciting growth and development avenues for us in the future. We are very much at the start of what we can accomplish.

Leslie Hill

Chief Executive Officer

22 November 2021