Frenkel Topping operating profit surges in first half

The AIM-traded firm said revenue and other operating income for the six months to 30 June was £3.9m, rising from £2.9m year-on-year, with recurring revenue of £2.9m - up from £2.2m, and representing 81% of total revenue.

Gross profit grew to £2.3m from £1.6m, and operating profit before share based payments was £1.3m - a significant improvement from the £0.3m reported in the first half of last year.

Pre-tax profit totalled £1.0m, up from £0.3m, and basic earnings per share were 1.022p , compared to 0.27p 12 months ago.

Frenkel Topping said assets under management totalled £765m at period end, rising from £687m on 30 June 2016, with assets on a DFM mandate rising to £291m from nil.

Net cash and marketable securities at the period end rose slightly to £4.8m from £4.4m, and the board declared an interim dividend of 0.2969p per share, rising from 0.2375p in the first half of 2016.

“The board is pleased with the positive results delivered during the first half of 2017,” said Frenkel Topping executive chairman Jason Granite.

“We will continue to execute the existing business plan for the company.

“We will seek to expand our geographical footprint, authorised individuals and establish further joint venture relationships to drive asset growth.”

Granite added that, having conducted a “thorough strategic review” to determine the best direction for the company, the board was “fully focused” on reaching £1bn assets under management.

“[We] remain open to opportunistic investments to maximise [our] return on [our] cash position, as well as other investments and acquisitions that might accelerate the growth of the business.”