Overview
Record, the UK-based asset manager, reported a 4% year-on-year drop in revenue for fiscal 2026, delivering total revenue of £40.10 million. That outcome fell short of a single analyst consensus estimate of £40.69 million. Net income for the year amounted to £7.03 million, and the company recorded a 22% decline in basic earnings per share compared with the prior year.
Profit and margins
Operating profit was reported at £10.02 million, while gross profit stood at £39.91 million. The company said the reduction in basic EPS was broadly in line with its own expectations.
Factors behind the revenue decline
Management attributed the fall in revenue to changes in mandates - described as mandate re-compositions - and the loss of a client that had schemes spanning several of Record's products late in fiscal 2025. These developments led to lower management fees. In addition, performance fees were reduced compared with the prior year, further contributing to the revenue shortfall.
Assets under management and business wins
Despite the revenue pressures, Record reported a 14% increase in assets under management, which rose to $114.6 billion. Management said this growth was supported by new business wins during the period. Private Markets revenue showed an increase, driven by those new mandates and higher management fees, especially within the Solutions for Asset Managers offering.
Outlook and guidance
Looking ahead, Record expects that newly secured mandates will add approximately £4 million to revenue in fiscal 2027. The company cautioned, however, that short-term revenue predictability remains limited because of the timing of mandate implementations and prevailing market conditions. On a medium-term basis, Record said its outlook is underpinned by rising assets under management and improvements in earnings quality.
Implications
The results underscore a mixed picture for Record: notable AUM growth and targeted Private Markets gains are counterbalanced by fee pressure following mandate changes and client exits. Management's forecast of incremental revenue from new mandates provides some forward visibility, but the company explicitly highlighted the ongoing uncertainty around short-term revenue timing.