Frenkel Topping reports another half-year of growth

22nd Aug 2023 12:29

(Sharecast News) - Financial and professional services firm Frenkel Topping updated the market on its first half of trading on Tuesday, with revenue surging 44% to £16m.

The AIM-traded firm said recurring revenue was ahead 9% at £5.9m, while gross profit was 32% higher at £6.6m.

EBITDA came in at £3.5m, making for a 30% increase, while profit attributable to shareholders was boosted 89% to £1.7m.

Basic earnings per share ascended to 1.4p, marking 75% growth, while cash generated from operating activities amounted to £1.5m, which was a 150% leap on the year.

Assets under Frenkel Topping's management expanded in the six months ended 30 June, to £1.26bn, up from £1.16bn at the same time last year.

The company underscored its impressive 99% client retention rate, which it said iti had consistently maintained.

Frenkel Topping said its performance reflected the inroads it was making in revenue diversification, particularly through its strategic acquisitions aimed at consolidating its position in the personal injury (PI) and clinical negligence (CN) domains.

A standout element was its discretionary fund manager, Ascencia Investment Management, with assets managed under a DFM mandate by Ascencia swelling to £761m, from £667m at the same point in 2022.

Frenkel Topping also noted that its recurring revenue had been supplemented significantly by the transactional revenue harnessed from businesses that it had integrated over the last three years.

Finally, the board noted growth among its group businesses, with Cardinal Management augmenting its major trauma centre portfolio by bringing in two new sites - the John Radcliffe Hospital overseen by the Oxford University Hospitals NHS Foundation Trust, and the Alder Hey Children's Hospital, which collaborated with Cardinal after a rigorous tender process.

"The business goes into the second half of the year carrying real momentum from the first half, benefiting from the diversification of revenue and encouraging growth in transactional revenue," the board said of its outlook.

"We do expect financial markets to remain challenging, which will continue to moderately impact assets under management 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."

At 0915 BST, shares in Frenkel Topping Group were up 4.67% at 56p.

Reporting by Josh White for Sharecast.com.