REG - Frenkel Topping Grp - Interim Results
30/09/2025 16:30
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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* H1 2024* % change FY2024
(£m) (£m) 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 (http://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
(https://protect-eu.mimecast.com/s/WNCMCR1EKSxDwoTNKWD-?domain=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 ended ended
30-Jun-25 30-Jun-24 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 (407) (1,079) (2,350)
costs
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 ended ended ended
For the period: 30-Jun-25 30-Jun-24 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, (1,939) (1,694) (2,547)
trade and other receivables
(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 ended ended
30-Jun-25 30-Jun-24 31-Dec- 24
£'000 £'000 £'000
7,532 6,451 13,405
Recurring
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.
Financial services Costs Other Professional Services Central Services Total
Law
6 Months ended June 2025
£'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
Financial services Costs Other Professional Services Central Services Total
Law
6 Months ended June 2024
£'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
Financial services Costs Other Professional Services Central Services Total
Law
Year ended December 2024
£'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 ended ended
30-Jun-25 30-Jun-24 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 ended ended
30-Jun-25 30-Jun-24 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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