RNS Number : 4744B
Frenkel Topping Group PLC
30 September 2025
The information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
30 September 2025
Frenkel Topping Group plc
("Frenkel Topping", "the Company, or "the Group")
Interim Results for the six months ended 30 June 2025
Frenkel Topping (AIM: FEN), a specialist financial and professional services firm operating within the personal injury and clinical negligence marketplace (PI and CN), is pleased to announce its interim results for the six months ended 30 June 2025.
Financial Highlights
H1 2025* (£m)
H1 2024* (£m)
% change
FY2024 Full year (£m)
Revenue
20.9
17.9
17%
37.4
Recurring revenue
7.5
6.5
15%
13.4
Non-recurring revenue
13.4
11.4
18%
24.0
Gross profit
7.6
6.9
10%
14.4
Adjusted EBITDA**
4.1
3.6
14%
8.0
Adjusted EPS (basic)
2.0 pence
1.8 pence
11%
3.9 pence
Cash & cash equivalents
3.4
4.1
(17%)
3.1
Net cash/(debt)
(3.5)
(1.3)
(169%)
(3.8)
Cash generated from operations (pre-tax)
2.5
0.9
178%
3.4
Funds Under Management ("FUM")
1,633
1,455
12%
1,560
Assets on a discretionary mandate
1,085
935
16%
1,031
*Unaudited
**EBITDA before share based compensation, acquisition strategy, integration, reorganisation and exceptional costs
Operational Highlights
· FUM growth in the period up 12% (H124: up 15%) with confidence of continued growth in the remainder of the year
· Ascencia Investment Management Limited ("Ascencia") won the Defaqto Defensive Comparator Sector award for its Sharia Compliant Solution 4
· Ascencia also received Highly Commended status from Defaqto for three further investment solutions
· Major Trauma Support Partnership ("MTSP", formerly Cardinal Management) agreed a new partnership with the NHS Major Trauma Centre ("MTC") at Royal Stoke University Hospital, taking the total number of sites at which MTSP provides services to twelve
· Client retention within our IFA business remains strong at 99%
· 16% increase in number of Medico-Legal Expert Witnesses from December 2024 - a key focus for growth for the Board
Possible Offer from Harwood Private Equity LLP ("Harwood")
On 2 June 2025, it was announced that Harwood and the Independent Directors of the Group were in discussions with respect to a possible cash offer to be made by Harwood for the entire issued and to be issued ordinary share capital of the Group.
Discussions remain ongoing and a further announcement(s) will be made in due course as and when appropriate.
As stated in the announcement released on the 22 September 2025, and in accordance with Rule 2.6(a) of the Code, Harwood is required either to announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement would be treated as a statement to which Rule 2.8 of the Code applies. Such announcement must be made by no later than 5.00 p.m. on 20 October 2025. This deadline can be further extended with the agreement of the Independent Directors and the consent of the Panel in accordance with Rule 2.6(c) of the Code.
The Company remains in an 'offer period' in accordance with the rules of the Code and the attention of the Company's shareholders is drawn to the continuing disclosure requirements of Rule 8 of the Code.
For further information:
Frenkel Topping Group plc
www.frenkeltoppinggroup.co.uk
Richard Fraser, Chief Executive Officer
Tel: 0161 886 8000
Cavendish Capital Markets Limited (Nominated Advisor & Broker)
Tel: 020 7220 0500
Henrik Persson Marc Milmo Finn Gordon Isaac Hooper
The Frenkel Topping Group of companies specialises in providing financial advice and asset protection services to clients at times of financial vulnerability, with particular expertise in the field of personal injury (PI) and clinical negligence (CN).
For more than 30 years the Group has worked with legal professionals and injured clients themselves to provide pre-settlement, at-settlement and post-settlement services to help achieve the best long-term outcomes for clients after injury. It boasts a client retention rate of 99%.
Frenkel Topping Group is focused on consolidating the fragmented PI and CN space in order to provide the most comprehensive suite of services to clients and deliver a best-in-class service offering from immediately after injury or illness and for the rest of their lives.
The Group's services include the Major Trauma Signposting Partnership service inside NHS Major Trauma Centres, expert witness, costs, tax and forensic accountancy, independent financial advice, investment management, and care and case management.
The Group's discretionary fund manager, Ascencia, manages financial portfolios for clients in unique circumstances, often who have received a financial settlement after litigation. In recent years Ascencia has diversified its portfolios to include a Sharia-law-compliant portfolio and a number of ESG portfolios in response to increased interest in socially responsible investing (SRI).
Frenkel Topping has earned a reputation for commercial astuteness underpinned by a strong moral obligation to its clients, employees and wider society, with a continued focus on its Environmental, Social and Governance (ESG) impact.
For more information visit: www.frenkeltoppinggroup.co.uk
CEO's statement
The Board is pleased to present the results for the first half of 2025 as we continue with the execution of our strategy to enable continued medium to long term growth and meet our objective of providing more clients with a better quality of life.
As previously announced, the Company continues to navigate a challenging backdrop with continued economic uncertainty, including rising employer's national insurance and National Minimum Wage. Against this, we were pleased to have been able to deliver interim numbers showing year on year growth of 17% in revenue and 14% in Adjusted EBITDA.
Within our Financial Services segment, growth in FUM of 12% did not quite keep pace with the prior year (15%) however it remains a positive indicator. This continued growth is a testament to the work of our sales team and the careful management of investment solutions by our investment managers in Ascencia, led by CIO Simon Callow.
The Board was delighted that Ascencia has once again been recognised by Defaqto. Having had two portfolios recognised as highly commended in H1 2024, we were thrilled to take home the top prize this year in the Defensive Comparator Sector award, with a further three portfolios being highly commended. Based on 5 years of discrete risk-adjusted performance measures, the Defaqto MPS Comparator awards recognise the most consistent MPS solutions within the Defensive comparator sector.
Our Costs segment saw a challenging year in 2024 within Partners in Costs ("PIC"). It is therefore particularly pleasing to see the impact of the actions taken by the board, and PIC's management team, result in a much improved start to 2025 by PIC. This has been aided by the launch of a new product, Total Timeline+, which helps solicitors to improve cash flow and cost management by moving cost discussions and processes from the end of a case to the beginning and throughout its life.
In addition, during the period, our Costs segment launched Resolution Costs, a new brand aimed at developing new relationships within the Defendant and Commercial legal spheres.
Within our Other Professional Services segment, Somek & Associates continues to make good progress, having increased its number of Medico-Legal expert witnesses by 16% since December 2024, enabling us to handle an increased number of instructions in an area of high demand. This remains a key focus area and opportunity for future growth.
As mentioned within the Operational Highlights above, MTSP was successful in its tender for the MTC at Royal Stoke University Hospital, increasing the total number of sites at which MTSP provides services to those who need it most at the earliest stage after they have had an accident. MTSP has continued to show its success as a transformational acquisition, both in terms of the business itself and the support it provides in the flow of work to other parts of the Group.
We continue to focus on organically developing our offering within Care and Case Management. Having invested in this part of the Group to increase our headcount and geographical reach, the focus is now on business development in order to grow our customer base.
Within our Accountancy business, we have begun the process of rebranding from "Forths" to "Forte". This brand will be the single brand that we plan to use within our general market IFA offering in order to provide simplified messaging. This rebrand coincides with investment within our general practice accountancy department, following the appointment of Lee Jones as our business lead in this area during H2 2024.
This investment within our Care and Case Management and Accountancy businesses has led to a modest fall in Adjusted EBITDA from our Other Professional Services segment in H1 2025 when compared to the prior period. However, as a board we are confident that this investment will be a springboard for growth over the medium to long term.
Outlook
The business is encouraged by the first half performance of the Group. The Board recognises that the economic backdrop still provides headwinds that the Group continues to navigate through but the Board believes that the Group is well positioned to continue to deliver against its strategic objectives over the medium to long term. The Board is pleased with the continued progress made by the Group since the period end with overall trading in that period in line with management's expectations.
CFO's statement:
Recurring revenue in the period has grown by 15% from H1 2024 due to the record levels of FUM added in FY24 and the continued growth in FUM that has been delivered during the first half of this year.
Over the last 18 months the Group successfully launched its Money Market Solution ("MMS") which was successful in attracting new funds under advice during volatile equity market conditions. The MMS solutions were designed to appeal to clients who were looking for a solution that benefited from the higher interest rate environment that has existed over the last few years. Whilst the solution has been successful in growing the assets under management with total funds being £130m as at 31 December 2024, it does offer a reduced fee rate in comparison to our other equity capital market solutions and strategies. With the performance of equity capital markets being more positive during H1 2025, we have seen client appetite return towards those higher margin products with AUM in our MMS solution as at 30 June 2025 being £123m as allocations moved to our equity capital market solutions and 84% of new mandates won being fully invested into our equity capital market solutions and strategies compared to only 43% in the same period last year.
The growth in non-recurring revenue compared to H1 2024 shows considerable organic growth (£1.5m) across our transactional businesses, driven in large part by the continued growth in our Medico-Legal expert witness function and an improved performance within our Costs segment. This is aided by the full period impact of the acquisition of Northwest Law Services (£0.5m) which was acquired in mid-April 2024.
As has been previously announced, as a business we have had to try and absorb the impact of rising employer's national insurance rates and National Minimum Wage which has affected Group EBITDA margins. Notwithstanding this, we are pleased that improved revenues has also improved the overall outturn of the Group which remains in line with the Board's expectations.
We show a credit of £0.8m within share-based compensation during the period and a corresponding charge of £0.2m in corporation tax. This primarily relates to LTIP options granted to directors in 2021 where KPIs relating to share price were not met and as such the options have lapsed.
The corporation tax charge in the period contains £0.3m relating to repayments to HMRC around historic returns regarding the treatment of unwinding discounting on deferred consideration payments.
The period saw pre-tax cash generated from operations of £2.5m, a significant increase on the prior year, as the Group benefited from a considerably increased contribution from our Financial Services segment where increased profits have flowed through straight to cash. This was helped further by marginal gains made in the working capital cycles across all profit-generating operating segments. Despite this, we still face challenges, particularly in our Costs segment, due to delays in both the County Court system and, for our Court of Protection team, in the Senior Courts Costs Office, although the latter has begun to show small signs of improvement.
Despite the improvement in our working capital cycle, our net debt position has grown from £1.3m in June 2024 to £3.5m in June 2025 as a result of deferred and contingent payments relating to acquisitions made in previous years.
Frenkel Topping Group plc
6 Months
6 Months
Year
Group income statement for the period:
ended 30-Jun-25
ended 30-Jun-24
ended 31-Dec- 24
Unaudited
Unaudited
Audited
Notes
£'000
£'000
£'000
REVENUE
20,929
17,870
37,401
Direct staff costs
(13,370)
(10,977)
(23,025)
Gross Profit
7,559
6,893
14,376
Administrative expenses
2
(3,527)
(4,815)
(9,706)
Adjusted profit from operations
3,649
3,197
7,153
- share based compensation
790
(40)
(133)
- acquisition strategy, integration, reorganisation and exceptional costs
(407)
(1,079)
(2,350)
PROFIT FROM OPERATIONS
4,032
2,078
4,670
Finance and other income/ (fair value losses on investments)
9
11
21
Finance costs
3
(410)
(348)
(744)
Revaluation of contingent consideration
-
-
204
PROFIT BEFORE TAX
3,631
1,741
4,151
Income tax expense
(1,208)
(528)
(1,120)
PROFIT FOR THE PERIOD
2,423
1,213
3,031
Gains on property revaluation arising net of tax
-
-
30
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
2,423
1,213
3,061
PROFIT ATTRIBUTABLE TO:
Owners of parent undertakings
2,325
1,073
2,795
Non-controlling interest
98
140
236
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of parent undertakings
2,325
1,073
2,825
Non-controlling interest
98
140
236
0.
Earnings per share - basic (pence)
1.9
0.9
2.3
Earnings per share - diluted (pence)
1.8
0.8
2.1
Adjusted earnings per share - basic (pence)
2.0
1.8
3.9
Adjusted earnings per share - diluted (pence)
2.0
1.7
3.7
The results for the period are derived from continuing activities.
Frenkel Topping Group plc
Group Statement of Financial Position as at:
30-Jun-25
30-Jun-24
31-Dec-24
Unaudited
Unaudited
Audited
£'000
£'000
£'000
ASSETS
NON CURRENT ASSETS
Goodwill and other intangibles
30,602
30,546
30,602
Plant, property and equipment
3,603
3,289
3,450
Loans receivable
51
149
101
34,256
33,984
34,153
CURRENT ASSETS
Accrued income
9,720
8,180
9,057
Trade receivables
13,091
12,031
12,480
Other receivables
1,631
1,364
911
Investments
117
111
114
Cash and cash equivalents
3,418
4,122
3,138
27,977
25,808
25,700
TOTAL ASSETS
62,233
59,792
59,853
EQUITY AND LIABILITIES
EQUITY
Share capital
640
640
640
Share premium
22,705
22,706
22,706
Merger reserve
6,039
6,492
6,155
Revaluation reserve
589
559
589
Own share reserve
(2,129)
(2,134)
(2,130)
Other reserve
(341)
(341)
(341)
Retained earnings
16,241
14,178
14,324
Equity attributable to owners of the parent company
43,744
42,100
41,943
Non-controlling interests
333
312
308
TOTAL EQUITY
44,077
42,412
42,251
CURRENT LIABILITIES
Current taxation
1,559
1,222
1,015
Trade and other payables
7,790
7,092
6,306
9,349
8,314
7,321
LONG TERM LIABILITIES
8,807
9,066
10,281
TOTAL EQUITY AND LIABILITIES
62,233
59,792
59,853
Frenkel Topping Group plc
6 Months
6 Months
Year
Group Cash Flow Statement For the period:
ended 30-Jun-25
ended 30-Jun-24
ended 31-Dec- 24
Unaudited
Unaudited
Audited
£'000
£'000
£'000
Profit before tax
3,631
1,741
4,151
Adjustments to reconcile profit for the period to cash generated from operating activities:
Finance income
(9)
(11)
(21)
Finance costs
410
348
744
Revaluation of contingent consideration
-
-
(204)
Share based compensation
(693)
121
234
Depreciation
438
389
852
(Increase)/decrease in accrued income, trade and other receivables
(1,939)
(1,694)
(2,547)
(Decrease)/increase in trade and other payables
670
53
192
Cash generated from operations
2,508
947
3,401
Income Tax paid
(480)
(648)
(1,430)
Cash generated from operating activities
2,028
299
1,971
Investing Activities
Acquisition of plant, property and equipment
(158)
(160)
(238)
Acquisition and deferred consideration payments
(1,167)
(3,277)
(5,115)
Cash acquired on acquisition of subsidiaries
-
232
232
Cash (used) / generated in investing activities
(1,325)
(3,205)
(5,121)
Financing activities
Exercise of share options
-
-
-
Dividend paid
(50)
(172)
(1,903)
Receivable loans repaid
50
-
-
Repayment of borrowing
(121)
(71)
(257)
Loans received
333
5,400
7,179
Interest received
9
6
13
Interest element of lease payments
(48)
(24)
(59)
Principal element of lease payments
(329)
(266)
(578)
Other interest paid
(267)
(270)
(532)
Cash used in financing
(423)
4,603
3,863
(Decrease)/ increase in cash
280
1,697
713
Opening cash
3,138
2,425
2,425
Closing cash
3,418
4,122
3,138
Notes to the Interim Financial Statements
1. Revenue and Segmental Reporting
All of the Group's revenue arises from activities within the UK.
Revenue arising from recurring and non-recurring sources is as follows:
6 Months
6 Months
Year
ended 30-Jun-25
ended 30-Jun-24
ended 31-Dec- 24
£'000
£'000
£'000
Recurring
7,532
6,451
13,405
Non-recurring
13,397
11,419
23,996
_______
_______
_______
Total revenue
20,929
17,870
37,401
_______
_______
_______
Operating Segments
The Group's chief operating decision maker is deemed to be the CEO. The CEO has identified the following operating segments:
Financial Services
This segment includes our independent financial advisory, discretionary fund management and financial services businesses.
Costs Law
This segment includes each of our costs law services businesses.
Other Professional Services
This segment includes our major trauma signposting, forensic accountancy, care and case management and medico-legal reporting businesses.
Central Services
This is predominantly a cost centre for managing Group related activities or other costs not specifically related to a product.
6 Months ended June 2025
Financial services
Costs Law
Other Professional Services
Central Services
Total
£'000
£'000
£'000
£'000
£'000
Revenue
7,915
5,573
7,383
58
20,929
Adjusted EBITDA
3,358
1,344
1,480
(2,095)
4,087
6 Months ended June 2024
Financial services
Costs Law
Other Professional Services
Central Services
Total
£'000
£'000
£'000
£'000
£'000
Revenue
6,826
4,607
6,375
62
17,870
Adjusted EBITDA
2,546
1,036
1,600
(1,597)
3,585
Year ended December 2024
Financial services
Costs Law
Other Professional Services
Central Services
Total
£'000
£'000
£'000
£'000
£'000
Revenue
14,207
9,852
13,206
136
37,401
Adjusted EBITDA
5,542
2,616
3,195
(3,348)
8,005
2. Administrative Expenses
The following table analyses the nature of expenses:
6 Months
6 Months
Year
ended 30-Jun-25
ended 30-Jun-24
ended 31-Dec- 24
£'000
£'000
£'000
Depreciation
438
389
852
Share based compensation
(790)
40
133
Acquisition strategy, integration, reorganisation and exceptional costs
407
1,079
2,350
Other administrative expenses
3,472
3,307
6,371
Total administrative expenses
3,527
4,815
9,706
3. Interest and similar items
6 Months
6 Months
Year
ended 30-Jun-25
ended 30-Jun-24
ended 31-Dec- 24
£'000
£'000
£'000
Interest on lease liabilities
48
24
59
Loan and other interest charges
271
166
407
Unwinding discount - deferred and contingent consideration
91
158
278
Total finance costs
410
348
744
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