Currency manager Record (LON:REC) saw shares sink over 2.5 percent on Friday morning, after recording a 6.7 percent fall in pre-tax profit.
Pre-tax profit fell to £7.3 million over the course of the year, despite a 3.8 percent revenue boost to £23.8 million.
The group declared a final dividend of 1.15 pence per share, bringing the total payment up by 5 percent on year, alongside a special dividend for the year of 0.5p per share. Its operating profit margin fell three percentage points to 31 percent.
Chairman Neil Record said changes to passive hedging mandates meant there was potential to cut costs:
“These opportunities are now being recognised in commercial terms, changing the mix in fees on such mandates and adding further diversification to Record’s income streams in the form of performance fees, which over time are expected to match or exceed foregone management fees,” he said.
“Notwithstanding the increase in revenue over the prior year, this continued focus on investing in the business has contributed to a decrease in our operating margin from 34 percent to 31 percent.”
Shares in Record are currently down 2.58 percent at 45.40 (1025GMT).
