REG - Frenkel Topping Grp - Final Results
22/04/2024 07:00
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RNS Number : 4135L Frenkel Topping Group PLC 22 April 2024
Frenkel Topping Group plc
("Frenkel Topping", "the Company" or the "Group")
Results for the 12 months ended 31 December 2023
A year of executing strategy and delivering a strong performance
Frenkel Topping Group (AIM: FEN), a specialist professional and financial
services firm operating in the Personal Injury (PI) Clinical Negligence (CN)
space, is pleased to announce its final results for the 12 months ended 31
December 2023 ("FY23"). These results demonstrate a strong performance
through 2023 and the Board is pleased to report an encouraging start to the
2024 financial year.
Financial Highlights
FY 2023 FY 2022 % change
Revenue £32.8m £24.8m +32%
Recurring revenue £12.0m £11.0m +9%
Non-recurring revenue £20.8m £13.8m +51%
Gross profit £13.9m £11.1m +25%
Adjusted EBITDA* £8.0m £6.1m +31%
Adjusted profit from operations £7.2m £5.5m +31%
Adjusted EPS* 4.26 pence 3.78 pence +13%
Total dividends (paid and proposed) 1.375 pence per share 1.37 pence per share -
Cash generated from operating activities £3.2m £0.7m +357%
*Adjusted EBITDA and Adjusted EPS are stated after adding back share based
compensation, re-organisation, costs relating to our acquisition strategy and
any exceptional items.
Operational Highlights
· Fifteenth consecutive year of high client retention (99%) in
investment management services
· Funds under management ("FUM") of £1,335m (as at 31 December 2022:
£1,187m) - growth of 12% despite turbulent markets
· Funds on a discretionary mandate of £820m (as at 31 December 2022:
£715m) - growth of 15%, showing the resilience of our portfolios
· New Money Market Solution launched in June 2023 attracting investment
of £39m as at 31 December 2023
· Two new Major Trauma Centres added by Cardinal Management Limited
("Cardinal")
· KnowledgeHub delivered 19 expert training sessions with 7,970
registrations
· Welfare Benefits Advice team identified over £2m in unclaimed
benefits for our clients
Q1 update - an encouraging start to the new financial year
· The Group has signed a new £7.5m Revolving Credit Facility with
Santander to support its growth and acquisition strategy
· As announced this morning, we are continuing the roll-up strategy
with a strategic bolt on acquisition of North West based cost consultant,
North West Law Services Limited (NWL). 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, Bidwell Henderson Costs Consultants
Limited and A&M Bacon Limited
· Undertaken a group wide initiative to create a set of values that
align and represent us as a Group
· New Money Market Solution investment grown to £92m as at March 2024
from £39m in the last three months
· Record numbers for pipeline of opportunities across the Group
· Continuation of the Costs Training Academy
Richard Fraser, CEO of Frenkel Topping, said:
"Our 2023 results demonstrate the success of our acquisition strategy over
recent years and the resilience of our business against the backdrop of
challenging and volatile market conditions which saw a modest impact on the
year end outturn as previously announced.
Non-recurring revenue has been pleasing, with 22% of the total 51% growth in
this area coming from organic growth across our business units. This
demonstrates the strength of the acquisition strategy with the Company
demonstrably identifying businesses that the management has been able to grow
and capture upside opportunities as well as diversifying revenue streams. We
will continue to explore synergies, to invest in our people, data and
technology in order to help us to further take advantage of opportunities that
the enlarged Group presents.
Additionally, we have continued to grow our FUM, in no small part thanks to
Ascencia, which has again beaten its benchmarks and shown agility in launching
the new Money Market Solution in response to market dynamics and client
demand. This product, assisted by the hard work and tenacity of our sales
team, has attracted investment from both new and existing clients with £39m
of assets added by the year end, generating revenue for the Company and
positive outcomes for our clients.
During the year the Frenkel Topping Charitable Foundation grew to new heights
with bigger events, more fundraising and contributions up by 59% from 2022.
In 2024 we have continued to enhance our compliance framework in order to
further embed FCA Consumer Duty into our operations and welcome the
appointment of Consumer Duty Champions at board level. "
We continue to be optimistic about our long-term goal to grow to 15% market
share in each of our business units."
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.
For more information visit: www.frenkeltoppinggroup.co.uk
(https://protect-eu.mimecast.com/s/WNCMCR1EKSxDwoTNKWD-?domain=frenkeltoppinggroup.co.uk)
Chairman's Statement
Overview
On behalf of the Frenkel Topping Group (FTG) Board of Directors, I am pleased
to report on another positive year of growth for the Group in which we
continued to deliver against our strategy.
The Group's performance in the last financial year demonstrates its resilience
in a challenging financial market, as well as further progress made through
our focused acquisition strategy and continued consolidation of the PI and CN
space.
Following fundraises in 2020 and 2022 the Group has worked to consolidate the
much-fragmented PI and CN space, making key acquisitions which fit with the
culture and values of the existing businesses.
Whilst we have not yet fully maximised the opportunities the enlarged Group
presents, we are beginning to see the fruits of our labour, with acquisitions
made in prior years showing increased revenues and EBITDA compared to when
they were acquired. Furthermore, the continued embedding of our services
within our professional client base is beginning to open the door to more
opportunities to add FUM than we have previously seen.
Having stepped into the role of Chairman during February 2024, I would like to
take the opportunity to express my gratitude to Tim Linacre for his
stewardship and expertise in the role since 2020. Further, I am pleased that
he remains on the Board as a Senior Non-Executive Director as we step forward
into the next chapter of this journey.
Dividend
Total dividends proposed for the year are 1.375p per share (FY 2022: 1.37p),
reflecting the Board's intention to continue to invest in the future of the
business.
Outlook
Our industry continues to face headwinds as increased compliance costs and
higher interest rates encourage clients to place money into lower margin money
market funds. However, the Group now provides a broad range of services where
we have the opportunity to cross sell, thereby accelerating organic growth.
There is also the opportunity to achieve synergies across the Group as
earn-out payments come to an end, enabling better integration of our various
operations.
Consequently, although we face many challenges, we remain confident that the
Group will continue to prosper over the coming year.
Christopher Mills
Chairman
Chief Executive Officer's Statement
Review of the Year
I am very pleased to report on another strong 12-month period against the
backdrop of market volatility. This is a testament to the hard work of the
staff across all of our business units and I would like to thank them for
their efforts during the year.
Additionally, the investments made into acquisitions across recent years were
especially important in diversifying revenue streams which helped to protect
us against the full impact of financial markets.
Further, we are pleased to report another year where our in-house
discretionary fund manager, Ascencia Investment Management (Ascencia), has
outperformed its benchmarks, as shown within the CFO's report. Ascencia's
conservative multi-asset investment approach continues to deliver a smooth
client investment experience with a focus on asset protection.
High interest rates have meant many potential new Court of Protection clients
were inclined to hold funds within the Government's Court Funds Office
accounts rather than to invest. In June 2023, in part in response to this,
Ascencia launched its 'Money Market Solution' which provides clients with an
investment solution that benefits from the higher interest rate environment.
This product, assisted by the hard work and tenacity of our sales team, has
attracted investment from both new and existing clients with £39m of assets
added by the year end. Whilst funds in this Money Market Solution product earn
a lower fee than those invested in our other investment solutions, moderately
impacting the overall full year outturn, we are confident that they will be
redeployed to higher fee products across our proposition as financial markets
turn.
During the year we continued to focus on integrating the acquisitions made in
prior years in order to maximise the commercial opportunities being a larger
Group presents. This will continue to be a focus in the year ahead, particular
with a view to harnessing the newly available data.
Whilst doing so, we are also exploring further acquisition opportunities. We
are looking at a number of businesses which complement our service offering
and give us increased access to clients, be it via new services offered,
client relationships or increased geographical spread. We remain firmly
focused on the PI and CN space.
We are proud to have added two new sites to Cardinal's Major Trauma
Signposting (MTSP) service and discussions continue in respect of a number of
further sites. This partnership with the NHS provides a vital bedside service
to patients at the earliest possible opportunity. At each MTSP site, Cardinal
has selected a legal panel which comprises law firms who provide the highest
quality of care and service to patients which in turn provides significant
opportunity for the Group to further strengthen its relationships with PI and
CN departments within law firms nationally.
Consumer Duty
During the year we welcomed the launch of the FCA's Consumer Duty guidance,
putting clients' needs first in order to improve outcomes for consumers. This
aligns well with the customer focused approach we have always had. Moreover,
we began the current financial year with the launch of the Frenkel Topping
Group Values (detailed within the Strategic Report section of our Annual
Report) which will be at the heart of everything we do moving forward,
enhancing what we offer to our clients, as well as our people and ultimately
our shareholders. These values align with Consumer Duty and throughout 2024 we
will continue to review and enhance our compliance framework, further
embedding the Consumer Duty and undertaking an assessment of value for our
clients. Consumer Duty is expected to result in certain modest changes to our
working practices which we are currently reviewing with a keen eye on making
sure that clients' best interests are always put first and fair value is
delivered.
We have appointed our existing non-executive director Rt. Hon. Mark Field as
Non-Executive Consumer Duty Champion for Frenkel Topping Limited (FTL) and
Ascencia. I have taken on the role of Executive Champion for Ascencia whilst
Mark Holt has taken on the same role for FTL. Mark will also be the Executive
Champion for Cardinal alongside Andrew Pemberton, Cardinal's Managing
Director.
Market Landscape
According to industry data from NHS Litigation Authority and media sources,
the NHS paid out Clinical Negligence Damages of £2bn across a total of 6,888
claims during the 12 months to 31 March 2023.
Road traffic accidents accounted for 29,429 deaths or serious injuries with
£2.4bn paid out on motor insurance claims during 2023.
Outlook
2024 has seen a solid start across our transactional businesses and we
continue to be optimistic about our long-term goal to grow to 15% market share
in each of our business unit. Trading is in line with expectations and there
is as a strong pipeline of new FUM opportunities being pursued. However, we
are mindful of the market backdrop, consumer duty and the ongoing integration
of acquisitions and so it is prudent to maintain our existing expectations for
FY2024.
Richard Fraser
Chief Executive Officer
Chief Financial Officer's Report
We are pleased to report continued growth on prior years following the
continued success of our acquisition strategy. Revenue has grown by 32% to
£32.8m (2022: £24.8m) with profit from operations up 76% to £5.1m (2022:
2.9m) and adjusted EBITDA up by 31% to £8.0m (2022: £6.1m).
Non-recurring revenue
The strong growth of 51% in non-recurring revenue has been very pleasing,
demonstrating the success of the Group's acquisition strategy over recent
years.
Cardinal was acquired in January 2022 and Somek & Associates (Somek) and
N-Able Services were acquired during September 2022 and the impact of having
them for the full year makes up 29% of the increase, with the remaining 22%
coming from organic growth across all of our business units. This translates
to an acquisition related growth in Adjusted EBTIDA of 15% and organic growth
of 16%.
Forths (acquired 2020) and Bidwell Henderson (acquired 2021) closed the year
with record numbers of active files. Meanwhile Somek has grown their number of
expert witnesses by 19% during the year which further increases capacity to
accept new instructions. The onboarding of expert witnesses remains a key area
of focus for 2024 and we expect to achieve similar levels of growth throughout
the year ahead.
Recurring Revenue
It is reassuring that our recurring revenue has continued to grow, (9% on
FY22) and that the year-end FUM has increased. However, growth in FUM was
moderately impacted by market conditions which the Group has not been entirely
immune from.
This has been further supported by the launch of the Money Market Solution, as
discussed within the CEO's Statement, which diversified our revenue streams
during the year, and leaves funds poised to be redeployed to other investment
solutions as markets recover.
The performance of our discretionary fund management business Ascencia
Investment Management has again been strong and has continued to outperform
its key benchmarks:
Period: 01/01/22 - 31/12/23 Performance Benchmark*
Ascencia Growth 3 -1.81% -3.51%
Ascencia Growth 4 -2.04% -3.71%
*Benchmark for Ascencia Growth 3 is ARC Sterling Cautious and for Ascencia
Growth 4 is ARC Sterling Balanced Asset
Margin
Despite the inflationary challenges presented across 2023 and recent years, we
are pleased to have kept control of our Adjusted EBITDA margin:
2023 2022 2021 2020
Revenue 32.8 24.8 18.4 10.2
Adjusted EBITDA 8.0 6.1 4.6 2.5
Adjusted EBITDA Margin 24.4% 24.6% 25.0% 24.5%
As financial markets recover and we continue to add FUM, we do expect to begin
to see some margin improvement in the coming years.
Working Capital
Cash generated from operating activities has increased to £3.2m (2022:
£0.7m), an increase of 357%. Moreover, as a percentage of profit before tax
this has increased from 36% in 2022 to 168% in 2023.
This reflects the strength of our debtor book and shows that investment made
into organic growth within the Group in prior years is now beginning to turn
to cash.
The decrease in closing net cash position of £2.4m compared to the prior year
(2022: £5.0m) is as a result of £3.5m of deferred consideration payments
made in the year relating to acquisitions made in prior years.
Earnings Per Share (EPS)
Adjusted EPS has increased to 4.26 pence (2022: 3.78 pence) and 4.02 pence
(2022: 3.55 pence) for basic and diluted respectively. This increase of 13%
shows the success of our acquisition strategy to date and organic growth.
The statutory EPS is down from the prior period, primarily due to the
revaluation of contingent consideration payable in relation to acquisitions
made in prior years. This revaluation gave rise to an expense of £1.4m within
the current year however should be viewed as a positive as it shows the
success of these businesses and their continued growth.
Revolving Credit Facility
In January 2024, the Group secured a revolving credit facility of £7.5m with
Santander. The facility will be used to continue to pursue our acquisition
strategy, as outlined in the CEO Statement & Strategic Report, as well as
to fund contingent consideration payments due in 2024 and future years.
Elaine Cullen-Grant
Chief Financial Officer
group STATEMENT of comprehensive income
for the year ended 31 December 2023
2023 2022
£'000 £'000
REVENUE 32,809 24,850
Direct staff costs (18,943) (13,716)
_______ _______
GROSS PROFIT 13,866 11,134
Administrative expenses (8,797) (8,230)
Adjusted profit from operations 7,233 5,492
Share based compensation (610) (659)
Other adjustments to profit from operations (1,554) (1,929)
_______ _______
profit from operations 5,069 2,904
Finance and other income 20 (8)
Finance costs (532) (477)
Revaluation of contingent consideration (1,364) -
_______ _______
profit BEFORE TAX 3,193 2,419
Income tax expense (1,286) (570)
________ ________
PROFIT FOR THE YEAR 1,907 1,849
ITEMS THAT WILL NOT BE SUBSEQUENTLY RECLASSIFIED TO PROFIT OR LOSS:
Gains on property revaluation arising net of tax
80 127
_______ _______
TOTAL COMPREHENSIVE INCOME FOR YEAR 1,987 1,976
_______ _______
profit ATTRIBUTABLE TO:
Owners of the parent undertaking 1,661 1,652
Non-controlling interests 246 197
_______ _______
total comprehensive INCOME ATTRIBUTABLE TO:
Owners of the parent undertaking 1,741 1,779
Non-controlling interests 246 197
_______ _______
Earnings per ordinary share - basic (pence) 1.4p 1.5p
Earnings per ordinary share - diluted (pence) 1.3p 1.4p
Adjusted earnings per ordinary share - basic (pence) 4.3p 3.8p
Adjusted earnings per ordinary share - diluted (pence) 4.0p 3.6p
_______ _______
All amounts are derived from continuing operations.
The Notes to the Financial Statements form an integral part of these financial
statements.
group STATEMENT of FINANCIAL POSITION
As at 31 December 2023
Group Group
2023 2022
£'000 £'000
assets
NON-CURRENT ASSETS
Goodwill and other intangibles 29,210 29,580
Property, plant and equipment 2,998 2,833
Investments - -
Loans receivable 151 163
_______ _______
32,359 32,576
CURRENT ASSETS
Accrued income 6,066 4,071
Trade receivables 11,282 10,661
Other receivables 896 749
Investments 107 100
Cash and cash equivalents 2,425 4,986
_______ _______
20,776 20,567
_______ _______
total assets 53,135 53,143
_______ _______
equity and liabilities 640 637
equity 22,706 22,706
Share capital 6,492 6,245
Share premium 559 479
Merger reserve (341) (341)
Revaluation reserve (2,134) (2,211)
Other reserve 13,134 12,296
Own shares reserve
Retained earnings
_______ _______
Equity attributable to owners of the parent company 41,056 39,811
Non-controlling interests 344 283
_______ _______
TOTAL EQUITY 41,400 40,094
_______ _______
CURRENT LIABILITIES 999 760
Current taxation 8,112 7,680
Trade and other payables
_______ _______
9,111 8,440
LONG TERM LIABILITIES 2,624 4,609
_______ _______
TOTAL EQUITY AND LIABILITIES 53,135 53,143
_______ _______
GROUP STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Merger reserve Other Own shares Retained Earnings Total Non-controlling interests
Reserve Reserve Revaluation reserve controlling Total
interest
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance 1 January 2022 566 13,140 6,245 (341) (2,315) 11,716 352 29,363 196 29,559
Issue of Share Capital 71 9,566 - - - - - 9,637 - 9,637
Share based compensation (note 4) - - - - - 589 - 589 - 589
Sale of own shares - - - - 104 - - 104 - 104
Dividend paid - - - - - (1,661) - (1,661) (110) (1,771)
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Total transactions with 71 9,566 - - 104 (1,072) - 8,669 (110) 8,559
owners recognised in equity
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Profit for year - - - - - 1,652 - 1,652 197 1,849
Other comprehensive income - - - - - - 127 127 - 127
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Total comprehensive income - - - - - 1,652 127 1,779 197 1,976
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Balance at 1 January 2023 637 22,706 6,245 (341) (2,211) 12,296 479 39,811 283 40,094
Issue of share capital 3 - 247 - - - - 250 - 250
Sale of own shares - - - - 77 - - 77 - 77
Share based compensation - - - - - 443 - 443 - 443
Dividend paid - - - - - (1,266) - (1,266) (185) (1,451)
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Total transactions with owners recognised in equity 3 - 247 - 77 (823) - (496) (185) (681)
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Profit for year - - - - - 1,661 - 1,661 246 1,907
Other comprehensive income - - - - - - 80 80 - 80
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Total comprehensive income - - - - - 1,661 80 1,741 246 1,987
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
Balance at 31 December 2023 640 22,706 6,492 (341) (2,134) 13,134 559 41,056 344 41,400
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______
group CASHFLOW STATEMENT
for the year ended 31 December 2023
Group Group
2023 2022
£'000 £'000
Profit before 3,193 2,419
tax
Adjustments to reconcile profit before tax to cash generated from operating
activities:
Finance income (20) 8
Finance costs 532 477
Revaluation of contingent consideration 1,364 -
Goodwill write off 62 -
Share based compensation 499 480
Depreciation and amortisation 720 575
(Increase)/decrease in accrued income, trade and other receivables (2,736) (2,206)
(Decrease)/increase in trade and other payables 612 (96)
_______ _______
Cash generated from operations 4,226 1,657
Income tax paid (1,014) (999)
_______ _______
Cash generated from operating activities 3,212 658
Investing activities
Acquisition of property, plant and equipment (290) (240)
Acquisition and deferred consideration payments (3,518) (13,478)
Cash acquired on acquisition of subsidiaries - 1,992
Loans advanced - (22)
Dividend received - -
_______ _______
Cash used in investment activities (3,808) (11,748)
Financing activities
Shares issued (net of costs) - 9,637
Exercise of share options 1 1
Dividends paid (1,451) (1,771)
Loans received 237 -
Repayment of borrowing (201) (2)
Interest element of lease payments (38) (36)
Principal element of lease payments (516) (368)
Interest received 13 -
Other interest paid and foreign exchange losses (10) (3)
_______ _______
Cash generated from financing (1,965) 7,458
Decrease in cash and cash equivalents (2,561) (3,632)
Opening cash and cash equivalents 4,986 8,618
_______ _______
Closing cash and cash equivalents 2,425 4,986
========================================= =========================================
General information
The preliminary financial information does not constitute full accounts within
the meaning of section 434 of the Companies Act 2006 but is derived from
accounts for the years ended 31 December 2023 and 31 December 2022. The
figures for the year ended 31 December 2023 are audited. The preliminary
announcement is prepared on the same basis as set out in the statutory
accounts for the year ended 31 December 2023. Those accounts upon which the
auditors issued an unqualified opinion, did not include a reference to any
matters to which the auditors drew attention by way of emphasis, without
qualifying their report, and made no statement under section 498(2) or (3) of
the Companies Act 2006, will be delivered to the Registrar of Companies
following the Annual General Meeting.
Statutory accounts for the year ended 31 December 2022 have been filed with
the registrar of Companies. The auditors report on those accounts was
unqualified did not include a reference to any matters to which the auditors
drew attention by way of emphasis, without qualifying their report, and made
no statement under section 498(2) or (3) of the Companies Act 2006.
While the financial information included in this preliminary report has been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standard (IFRS), as adopted by the U.K.,
this announcement does not in itself contain sufficient information to comply
with IFRS.
Frenkel Topping Group Plc is incorporated and domiciled in the United Kingdom.
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:
Group Group
2023 2022
£'000 £'000
11,961 11,045
Recurring
Non-recurring 20,848 13,805
_______ _______
Total revenue 32,809 24,850
_______ _______
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.
Financial services Costs Other Professional Services Central Services Total
Law
2023
£'000 £'000 £'000 £'000 £'000
Revenue 12,778 8,355 11,570 106 32,809
Depreciation 341 115 264 - 720
Finance Income 12 1 2 5 20
Finance Costs 23 7 18 484 532
Profit before tax 4,153 1,609 2,598 (5,167) 3,193
Corporation tax (625) (306) (352) (3) (1,286)
Profit After Tax 3,528 1,303 2,246 (5,170) 1,907
Additions to plant property and equipment 536 91 202 - 829
Additions/(disposals) to Goodwill and other intangibles - - - (369) (369)
Financial services Costs Other Professional Services Central Services Total
Law
2022
£'000 £'000 £'000 £'000 £'000
Revenue 11,792 7,057 6,001 - 24,850
Depreciation 248 110 217 - 575
Finance Income (8) - - - (8)
Finance Costs 15 9 14 439 477
Profit before tax 3,403 981 1,307 (3,272) 2,419
Corporation tax (251) (174) (268) 123 (570)
Profit After Tax 3,152 807 1,039 (3,149) 1,849
Additions to plant property and equipment 219 333 263 - 815
Additions to Goodwill and other intangibles - - - 13,324 13,324
Measures of total assets and total liabilities are not shown as they are not
regularly reviewed by the CEO.
Group Group
6 TAXation 2023 2022
£'000 £'000
Analysis of charge in year
Current tax
UK corporation tax 1,251 691
Adjustments in respect of previous periods (7) 7
_______ _______
Total current tax charge 1,244 698
_______ _______
Deferred tax
Temporary differences, origination and reversal 42 (128)
_______ _______
Total deferred tax charge/(credit) 42 (128)
_______ _______
Tax on profit on ordinary activities 1,286 570
_______ _______
Factors affecting tax charge for year
The corporation tax rate rose to 25% from 1
April 2023. The effective standard rate of tax applied to reported profit on
ordinary activities is 23.52 per cent (2022: 19 per cent). There is no
expiry date on timing differences, unused tax losses or tax credits.
The charge for the year can be reconciled to the profit per the income
statement as follows:
Group Group
2023 2022
£'000 £'000
Profit before taxation 3,193 2,419
_______ _______
Profit multiplied by effective rate of corporation tax in the UK of 23.52% 751 460
(2022: 19%)
Effects of:
Expenses not deductible less capital allowances 241 232
Revaluation of contingent consideration not tax allowable 321 -
Deferred tax relating to Share based payments (140) (153)
Previous period adjustments (7) -
Deferred tax 162 -
Other (deductions)/charges (42) 31
_______ _______
Total tax expense for year 1,286 570
_______ _______
3 EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
Group Group
2023 2022
£'000 £'000
Earnings
Earnings for the purposes of basic and diluted earnings per share (net profit 1,661 1,652
for the year attributable to equity holders of the parent)
Earnings for the purposes of adjusted basic earnings per share (as above, 5,217 4,303
adjusted for share based compensation, acquisition strategy, reorganisation
costs and unwinding of the discount on deferred consideration)
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings
per share
Weighted average shares in issue
127,693 119,432
Less: weighted average own shares held
(5,216) (5,502)
_______ _______
122,477 113,930
Effect of dilutive potential ordinary shares: 7,300 7,344
- Share options
_______ _______
Weighted average number of ordinary shares for the purposes of diluted 129,777 121,274
earnings per share
_______ _______
Earnings per ordinary share - basic (pence) 1.4p 1.5p
Earnings per ordinary share - diluted (pence) 1.3p 1.4p
Adjusted earnings per ordinary share - basic (pence) 4.3p 3.8p
Adjusted earnings per ordinary share - diluted (pence) 4.0p 3.6p
_______ _______
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