Frenkel Topping no longer looking for a suitor

The AIM-traded company’s board said it had decided that it was in the best interests of shareholders, employees and clients to continue as an independent company pursuing its existing business plan - the prospects for which it believed had been enhanced by proposed amendments to the Ogden Discount Rate, which would materially alter the landscape of the industry.

As such, the group confirmed it was now not in active discussions with any third party in relation to a corporate transaction, such as a merger with or sale of the company, with the formal sale process now terminated.

“The company is therefore no longer in an offer period for the purposes of the Takeover Code and, accordingly, the requirement to make disclosures under Rule 8 of the Code has now ceased.

“The board remains enthused by the prospects for the group, and today reaffirms the group's commitment to deliver attractive on-going value to shareholders, as evidenced by the positive trading for the first six months of this financial year.”

Frenkel Topping proposed to announce its half year results in early July, in which the board said it expected to report profit from operations of £1.2m - up from £0.3m year-on-year - on revenues of £3.7m - up from £2.8m.

The board said that was a result of both an increase in assets under management to approximately £770m, from £745m at the start of the period, and an increase in gross margin to in excess of 60%, from 58% at the beginning of H1.

In addition, the group also paid a dividend increased by 25% from the previous year to shareholders in May, and completed the move to a new head office in Manchester.

“The board expects this strong growth to continue over the second half of the year and confirms that the company is trading in line with market expectations, as well as continuing to deliver a progressive dividend policy,” the board’s statement read.

Frenkel Topping would continue to execute its existing business plan for the group, it confirmed.

“The effects of the Ogden Review are now starting to translate into higher levels of damages available to our clients and this should accelerate the growth of AUM for the group.

“In addition to this, the group expects to increase its market share in the industry, through expanding its London office, increasing the number of authorised individuals employed by the group and establishing further joint venture relationships with legal firms to drive asset growth.”

The board said it aldo intended to expand its investment offerings through Frenkel Topping Investment Management and its ‘Safety First’ product range.

“As a result of the above, the board remains fully focused on reaching AUM of £1bn on an organic basis and remains open to opportunistic investments, both to maximise its return on its cash position, as well as other investments and acquisitions that might accelerate the growth of the business and strength of the platform in place.”