REG - Frenkel Topping Grp - Trading Update

Frenkel ToppingAnnouncement

22/08/2023 07:00

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RNS Number : 9809J  Frenkel Topping Group PLC  22 August 2023

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.

Frenkel Topping Group plc

("Frenkel Topping", the "Company" or the "Group")

Pre-Close Trading Update to 30(th) June 2023

Ahead of the announcement of its half-year results due on 29 September 2023,
Frenkel Topping (AIM: FEN), a specialist financial and professional services
firm operating within the personal injury and clinical negligence marketplace,
is pleased to provide the following trading update for the six month period
ended 30(th) June 2023 ("HY2023") and an outlook for the current financial
year ("FY2023").

                                           H1 2023*   H1 2022*   % change  FY2022

                                           (£m)       (£m)                 Full year (£m)
 Revenue                                   16.0       11.1       44%       24.8
 Recurring revenue                         5.9        5.4        9%        11.0
 Gross profit                              6.6        5.0        32%       11.1
 EBITDA**                                  3.5        2.7        30%       6.1
 Profit attributable to shareholders       1.7        0.9        89%       1.7
 EPS (basic)                               1.4 pence  0.8 pence  75%       1.5 pence
 Cash generated from operating activities  1.5        0.6        150%      0.7

 

*Unaudited

**EBITDA before share based compensation, acquisition strategy, integration
and reorganisation costs

Assets Under Management ("AUM") has grown to £1,261m (HY2022: £1,155m). The
Company is also pleased to again report its outstanding client retention rate
maintained at 99%.

This performance demonstrates the Company's continued resilience in a
challenging financial market, as well as the progress made by the Company in
diversifying revenue streams via its focused acquisition strategy and
consolidation of the Personal Injury (PI) and Clinical Negligence (CN) space.

Of note is the performance of the Group's discretionary fund manager, Ascencia
Investment Management ("Ascencia"), where assets on a DFM Mandate increased to
£761m (HY2022: £667m).

As we saw in the previous financial year the Group's recurring revenue has
continued to be supplemented by transactional revenue delivered by the Group's
businesses acquired during the last 3 years, underlining the success of
diversifying revenue streams, seeing total revenues at £16m, but with a
consequential change in margin profile.

The Company's group businesses have enjoyed real momentum in the period with
Cardinal Management Limited ("Cardinal") adding two new sites to its Major
Trauma Centre portfolio in recent months through John Radcliffe Hospital, run
by Oxford University Hospitals NHS Foundation Trust and Alder Hey Children's
Hospital opting to join Cardinal after a competitive tender process.

Outlook

The business goes into the second half of the year carrying real momentum from
H1, benefiting from the diversification of revenue and encouraging growth in
transactional revenue. We do expect financial markets to remain challenging,
which will continue to moderately impact AUM growth and the Company's
recurring revenue generated from this. However, the Board maintains confidence
in the full year outturn and its expectation for the year which are tracking
in line with management's expectation.

Notice of results and update on strategy

Final, unaudited results for the six months ended 30(th) June 2023 are
expected to be announced on 29 September 2023.

* The financial expectations noted above are preliminary. Adj. EBITDA defined
as before share based compensation, acquisition, integration and
reorganisation costs.

 

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

 finnCap Ltd (Nominated Advisor & Broker)                       Tel: 020 7220 0500
 Carl Holmes/Abigail Kelly/Milesh Hindocha (Corporate Finance)

 Tim Redfern / Charlotte Sutcliffe (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)

 

 

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