The loss of an important client has been a knock to Record, due to high operational leverage (revenue losses cannot easily be offset with cost cuts). That knock should be separated from the decline in earnings and the share price since flotation in 2007; the company was then very dependent on the management of high-margin absolute return funds, invested in a strategy that stopped working with the financial crisis. To do otherwise is to overlook what appears very much to be the right strategy of a broadening product range, increasing marketing reach, and deepening customer penetration. Success would see operational gearing working in the company’s favour. Balance sheet strength gives Record the time to build track records for new product launches and benefit from its distribution investment.