Frenkel Topping trading as expected after strong year

24th Apr 2023 13:31

(Sharecast News) - Professional and financial services firm Frenkel Topping reported a strong performance in its 2022 results on Monday, as well as encouraging growth in line with expectations at the start of the 2023 financial year.

The AIM-traded company said revenue for the 12 months ended 31 December totalled £24.8m, representing a 35% increase year-on-year.

Recurring revenue rose to £11m, up 24%, while gross profit reached £11.1m, making for growth of 23%.

Adjusted EBITDA added 33% to £6.1m, and underlying profit from operations improved to £5.5m, which was 28% higher than in 2022.

Total dividends paid and proposed were reported at 1.37p per share, representing a 1% increase, while total assets rose 40% to £53.1m.

Frenkel Topping said it achieved its 14th consecutive year of high client retention for investment management services, with a rate of 99%.

The firm's assets under management increased 1% to £1.19bn, and the assets on a discretionary mandate for Ascencia increased 6% to £715m.

It said the net growth in Ascencia demonstrated the resilience of the in-house DFM funds in a turbulent market.

The company made several acquisitions during the year, including Cardinal Management, Somek & Associates, and N-Able Services.

Frenkel Topping said it was continuing to execute its acquisition and consolidation strategy in the personal injury and clinical negligence space, diversifying its revenue streams.

Additionally, the firm signed additional working-in-partnership agreements with CFG Law.

The new financial year had started strongly, the board said, with the continued integration of acquisitions made to date.

It reported that the first three months of trading were robust and in line with management expectations.

The company also signed additional working-in-partnership agreements with Serious Injury Law.

"Despite a challenging market, we delivered a strong set of financial results, in no small part a reflection of our delivery against a focussed acquisition strategy resulting in diversified revenue streams," said chief financial officer Elaine Cullen-Grant.

"This coupled with control on costs has meant we were able to maintain our adjusted EBITDA margin at 25% and mitigate the slight reduction in recurring revenue.

"We are well positioned to continue to grow the business in the year ahead and are pleased with the 2023 performance to date."

At 1147 BST, shares in Frenkel Topping Group were up 2.18% at 67.44p.

Reporting by Josh White for Sharecast.com.