Frenkel Topping ends year in line with expectations

Professional and financial services company Frenkel Topping reported “excellent” progress in 2021 in a trading update on Tuesday, driven by organic growth, high levels of new business, and complementary strategic acquisitions.

The AIM-traded firm said assets under management grew 16% for the 12 months ended 31 December to £1.17bn, and assets on a DFM mandate increased 28% to £676m - both better growth rates than the prior year.

In addition, it also reported continued high client retention rates, at 99%.

As a result, Frenkel Topping said it expected trading for the full year to be in line with management expectations, with revenues of around £18m and adjusted EBITDA coming in at £4.5m.

The company said it had £8.6m of net cash at year-end.

Trading in 2022 had started positively, the firm added, benefitting from the momentum built in 2021, with a “solid pipeline” of new business opportunities.

Since the end of 2021, the company acquired Cardinal Management in what the board described as a “transformational deal”.

The directors said the acquisitions made to date had given the group visibility and oversight of its future business pipeline in a way that no other professional services group in its space could compete with.

They were also driving revenue across the company’s entire claims management systems.

“Following the strategy that was outlined in 2020 of consolidating the personal injury and clinical negligence space, we have acquired a number of highly complementary businesses that have not only contributed to the financial performance of the company but have given us considerable visibility and significantly enhanced our touchpoints,” said chief executive officer Richard Fraser.

“The company now provides a market leading platform from which to offer excellent services and care to people who have suffered significant and often life-changing injuries.

“Our strategy to consolidate the professional services market in personal injury and clinical negligence gives us greater access to clients - both directly to the injured party and via their professional representatives - and allows for a greater customisation of their care, delivering an end-to-end service, making Frenkel Topping a one-stop solution and a stand out player in its space.”

Fraser said the Cardinal acquisition, along with the continued integration of acquisitions in 2021, had accelerated the firm’s momentum as it moved into 2022, and strengthened an “already compelling” proposition.

“The board continues to assess further strategic acquisitions, however the group's primary focus going forward is the bedding in our recent acquisitions, and growing the enlarged group organically to drive strong and sustainable returns for our shareholders and building shareholder value.”

Frenkel Topping said it was planning to release its annual results for the year ended 31 December on 25 April.

At 1259 GMT, shares in Frenkel Topping were up 2.77% at 81.7p.