Frenkel Topping Group PLC Trading Update and Notice of Results (1430V)
26 January 2017 - 6:00PM
UK Regulatory
TIDMFEN
RNS Number : 1430V
Frenkel Topping Group PLC
26 January 2017
This announcement contains inside information for the purpose of
Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
Frenkel Topping Group plc
("Frenkel Topping" or the "Company")
Trading Update and Notice of Results
Frenkel Topping (AIM: FEN), a specialist independent financial
advisor and asset manager focussed on asset protection for
vulnerable clients, provides the following update in relation to
trading for the financial year ended 31 December 2016, , which are
scheduled for release on Monday, 20 March 2017.
Profit from operations is expected to be in line with market
expectations of GBP1.5m (2015: GBP1.5m) with cash generated from
operations of GBP1.6m (2015: GBP0.9m).
AUM across the Company had grown to GBP745m as at 31 Dec 2016
(2015: GBP666m) and following the launch of Frenkel Topping
Investment Management Limited (FTIM) in May 2016, the Company is
pleased to report Assets under Administration (AUM) on a
discretionary mandate with FTIM amounted to GBP253m as at 31 Dec 16
with further growth anticipated over the first half of 2017.
Closing cash as at 31 Dec 16 amounted to GBP1.2m (2015:
GBP4.5m), this after the payment of GBP0.7m in dividends, GBP1.1m
into purchasing the new head office building and GBP3.0m in
investments.
The Board is also pleased to announce that it has completed the
refurbishment and has moved into its new head office building in
Manchester. The Board believes the purchase of the building will be
an excellent working area to attract and retain employees and it
give the Group scope for expansion as it continues to work towards
its target of GBP1billion of AUM.
The performance during 2016 has reflected the Board's focus to
develop Frenkel Topping's ability to gear up to manage increased
AUM, including those on a discretionary mandate with FTIM.
As noted in the announcement on 23 January 2017 the Group's
surplus capital, held in cash and investments has been redeployed
into an investment vehicle which is expected to generate a minimum
10% return throughout 2017. The Group will continue to seek to
generate a return from the cash that it generates during 2017.
During the year the Board welcomed Mark Richards as
Non-Executive Director and Mark Holt as Commercial Director,
respectively expanding the Board's experience of the financial
services industry and large complex claims.
The Board intends to recommend shareholders approve a final
dividend of 0.8719 pence per share, which when added to the interim
dividend of 0.2375 pence per share, paid out on 5 August 2016, will
make a total dividend for 2016 of 1.1094 pence per share (2015:
0.8875) a 25% increase from the prior year. The Board intends to
increase the Company's dividends in future years.
As we enter 2017, having achieved many of our objectives for
2016, Frenkel Topping is now run rating at a significantly more
profitable level (with additional revenue and profitability being
driven from the AUM on a discretionary mandate within FTIM, lower
third party costs across the business and higher AUM). Given the
current run rating on a monthly basis, the Board reconfirms the
forecast for 2017 of c. GBP8.5m of Revenue and c. GBP3.4m of
Operating Profit.
The Board believes the Company is well positioned for further
success.
For further information:
Frenkel Topping Group www.frenkeltopping.co.uk
plc
Jason Granite, Executive
Chairman
Richard Fraser, Chief Tel: 0161 886 8000
Executive Officer
Julie Dean, Chief Financial
Officer
finnCap Ltd Tel: 020 7220 0500
Adrian Hargrave / James
Thompson / Alex Price
Tony Quirke
Walbrook PR Ltd Tel: 020 7933 8780 or
frenkeltopping@walbrookpr.com
Paul McManus Mob: 07980 541 893
Nick Rome Mob: 07748 325 236
About Frenkel Topping: www.frenkeltopping.co.uk
Frenkel Topping provides specialist independent financial advice
focussed on asset protection for clients. The specialist
independent financial adviser has a market leading position
providing advice and fund management services for personal injury
trusts and clinical negligence awards and is well placed to provide
services to a wider customer base.
The Company provides a range of wealth management services
including bespoke investment portfolios, financial and tax
planning. It is focused on increasing its assets under management
by growing the number of fee earners who are qualified to provide
benefits protection for a variety of needs as the Company adds to
its personal injury and clinical negligence specialism.
It has a national presence with offices in Manchester,
Birmingham, Bristol, Cardiff, London and Leeds and has
relationships and infrastructure in place to further grow its reach
and target markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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