David Southworth, Chairman of Frenkel Topping, commented: “Having recruited carefully and managed the expansion of our regional representation we are extremely well placed to increase operating profitability. Receipt of FCA approval will enable us to put our new strategy in place and to migrate our assets to the new model and to target a larger addressable market looking for a capital-preserving investment strategy. We are extremely excited by the prospects for the business and look forward to updating the market with further developments in due course.”
Frenkel Topping (AIM: FEN), a specialist independent financial advisor and asset manager focussed on asset protection for vulnerable clients, has told DirectorsTalk about its audited results for the year ended 31 December 2015.
This was a year of investment for the Company as it continued its growth strategy by extending its geographic reach, widening its potential asset base and expanding capabilities, while continuing to grow revenues and funds under management and creating a platform for further growth.
Financial Highlights
· Revenue up 11% to £6.31m (2014: £5.69m)
· Recurring revenue of £4.7m (2014: £4.20m)
· Gross profit up 2% to £3.97m (2014: £3.90m)
· Operating profit (before share based payments) down 14% to £1.50m (2014: £1.75m)
· Pre-tax profit down 18% to £1.29m (2014: £1.57m)
– reflecting expansion cost of £0.6m and acquisition costs of £0.14m
– underlying trading in line with market expectations
· Basic EPS down 28% to 1.64p (2014: 2.27p)Assets under management (“AUM”) up 7.6% to £666m (as at 31 December 2014: £619m)
· New AUM signed up during year £85m, (2014: £61m)
· Net cash of £4.47m (as at 31 December 2014: £1.70m)
· Total dividends (paid and proposed) up 25% to 0.8875p per share (2014: 0.71p)
Operational Highlights
· Seventh consecutive year of high client retention (98%) for investment management services
· New offices opened in London, Birmingham, Leeds, Cardiff and Bristol
· Acquisition of FC Fund Managers Limited for £4.42m in shares:
– Adding £2.5m to the Company’s cash balance
– Broadening the Company’s investment management capability
· Jason Granite joined the Board and was appointed Chief Investment Officer
Post Period End
· Successful negotiations with third party platform and asset management providers to ensure a best value proposition for the provision of investment advice and management to our clients
· Foundations laid for a step change in profitability
