That makes two 1958 Raleigh Record Ace Modernes to be ridden next week... I'm riding mine on Ken Sanford's DC area British theme ride on the 14th!
And to answer your question, yes. I am not sure how many folks were "racing" (more likely time trialing in the UK) RRA with or without hub gears. I suspect this was more a top end club bike by then. And, from all accounts, a miserable flop in sales since it was manufactured for only two years. It was suffered from being overpriced and underspec'd. I think there are more examples here in the US than the UK. Sturmey Archer ended production of all of the sexy club and racing hub gears by 1963, so this was very much the end of road.
Having said that, I love mine. It's one of the nicest riding machines in my collection and has excellent handling. If anything, I think it rides better than my '48!
http://www.wooljersey.com/
Peter Kohler
Washington DC USA