REG - Frenkel Topping Grp - Acquisition

Frenkel ToppingAnnouncement

22/04/2024 07:15

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RNS Number : 4136L  Frenkel Topping Group PLC  22 April 2024

 

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
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this announcement via a Regulatory Information Service, this inside
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Frenkel Topping Group plc

("Frenkel Topping" or the "Company")

Acquisition of North West Law Services Limited

Continuing the roll-up strategy with a strategic bolt on acquisition of North
West based cost consultant

Frenkel Topping (AIM: FEN), a specialist professional and financial services
firm operating in the Personal Injury (PI) and Clinical Negligence (CN) space,
is pleased to announce the acquisition of North West Law Services Limited
("NWL") (the "Acquisition") by way of acquisition of the current parent
company NWL (Group) Limited.

The Acquisition is in line with the Board's strategy of expanding the Group's
activities within the PI and CN market place and NWL is a leading firm of cost
consultants based in the North West with over 40 years' experience in the
field that will add to the Company's expertise in the area and work closely
with the teams at Partners in Costs Limited (PIC), Bidwell Henderson Costs
Consultants Limited (BH) and A&M Bacon Limited (A&M Bacon). The
Acquisition complements the Group's full service offering within costs and
gives broad national coverage and an ability to seamlessly offer its services
to its clients.

About North West Law Services Limited

Founded in 1982 and based in Chester, NWL offers a comprehensive service, from
settlement of claim to payment of costs, including all aspects of negotiation,
budgeting and detailed assessment. It has 13 fee earners including qualified
Costs Lawyers, Solicitors and CILEX and represents clients nation-wide.

The sellers, Lee Evans and Phil Roberts, intend to step back from the company
over time and, following a managed handover, NWL will become part of the
Group's Costs operating segment led by Rebecca Bidwell, Director of Strategy
and Implementation.

NWL specialises in PI, CN, Court of Protection and Commercial Costs, perfectly
complementing the range of services offered by the Group's existing costs
companies, whilst giving access to a new bank of clients and experienced fee
earners.

Consideration & financials

Frenkel Topping has agreed to pay a total cash consideration of £2.75m split
as follows:

•             An initial cash consideration of £1.65m (subject
to adjustment)

•             A further cash payment of £550K on the first
anniversary of completion

•             A final payment of £550K on the second
anniversary of completion.

The Acquisition has been funded utilising part of the recently announced
£7.5m revolving credit facility (RCF) with Santander.

For the year to August 2023, NWL recorded revenue of £1.6 million and PBT of
£465K and had net assets of £1.0 million as at that date.

The Board expects the Acquisition to contribute positively in the first full
year of ownership but is also mindful of certain integration costs expected to
be incurred and so is prudently leaving its management expectations unchanged
as a result.

Richard Fraser, Chief Executive Officer of Frenkel Topping Group plc,
said:

"I am delighted to welcome NWL into the Group. Over the years Lee, Phil and
their team have built a leading legal costs consultancy business that was well
known to the Group prior to discussions commencing. The acquisition fits
perfectly into our strategy of acquiring high-quality, customer-focused
businesses in the personal injury and clinical negligence market and builds on
the successful acquisition and integration of our other costs businesses -
Partners in Costs, A&M Bacon and Bidwell Henderson."

 

For further information:

 Frenkel Topping Group plc                                       www.frenkeltoppinggroup.co.uk (http://www.frenkeltoppinggroup.co.uk/)
 Richard Fraser, Chief Executive Officer                         Tel: 0161 886 8000

 Cavendish Capital Markets Ltd (Nominated Advisor & Broker)      Tel: 020 7220 0500
 Carl Holmes/Abigail Kelly/Fergus Sullivan (Corporate Finance)

 Tim Redfern (ECM)

About Frenkel Topping Group

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.

 

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