Successful strategy puts financial services group in a strong position

AIM-listed financial services group Frenkel Topping today revealed an impressive set of annual results, which saw both revenues and profits grow throughout the year through December 31 2020.

The Salford-based company saw a 19% increase in revenue to £ 10.2million, while pre-tax profits soared 25% to £ 1.5million.

A total dividend of 1.36 pence per share represents an increase of 1% compared to the same period last year.

The results represent a 12th consecutive year of high customer loyalty (99%) for investment management services.

Assets under management (AUM) increased 13% to £ 1,012m from £ 898m the previous year.

During the reporting period the company completed the acquisition of Forth Associates and an oversubscribed capital increase of £ 13 million. It also has a strong balance sheet with net cash of £ 12million, up from £ 1.3million in 2019.

It also had a good start to the new fiscal year with the acquisition of Partners in Costs and A&M Bacon, with performance and integration proceeding as planned.

The first three months of trading were strong, with significant AUM mandates won and outperforming internal targets for the first quarter of the new fiscal year.

There was also strong momentum in new expert witness instructions with high levels of new business won. The company says the current exchanges are in line with management’s expectations.

Managing Director Richard Fraser said: “Our strong performance provides a clear example of the positive results achieved when business smartness is anchored by a strong moral obligation to do the right thing on the part of customers, employees and customers. of society in general.

“Despite the uncertain geopolitical and macroeconomic context, we achieved a 25% increase in adjusted EBITDA, 25% in pre-tax income, 13% of assets under management and 32% of assets under mandate discretionary.

“Our customer retention rate has remained high at an impressive 99%, reflecting our clients’ confidence in us to manage their money prudently and generate returns.

“In addition, we were extremely pleased with the outcome of our fundraising of £ 13million (gross) to fund our M&A strategy to help build the group’s future profitability and consolidate the IP market and Clinical Negligence.

He added: “The year has started off strong, which gives rise to optimism for the remainder of the year.

“Within our IFA and investment management pillars, we have won major management under management mandates. Our conservative approach to investments and client-centric ethics has demonstrated our resilience in the face of the COVID-19 pandemic.

“Our professional services pillar, integrating our recent acquisitions, also had a good start to the year. This is particularly pleasing as it is a key pipeline for the future growth of AUM.

“The management team remains focused on creating value for stakeholders and the group negotiates in accordance with management expectations.”


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