Jason Granite, Executive Chairman of Frenkel Topping, commented: “Given the developmental nature of the first half the Company is well placed to expand its operations and client base. We expect the benefits of our new strategy to feed through more rapidly during the second half now that the migration of funds has commenced. We have a wider potential customer base, a highly competitive pricing structure and are also benefiting from savings generated by renegotiated terms.
“The growing number of fee earners should benefit from the increased product offering and ability to target a wider retail customer base and we are well placed to build on the momentum created during the first half. Having laid the foundations for growth during the period the Company remains on track to double 2015’s operating profitability by 2017.”
Frenkel Topping (AIM: FEN), a specialist independent financial advisor and asset manager focussed on asset protection for vulnerable clients, has given DirectorsTalk its interim results for the six months ended 30 June 2016.
The performance during the period reflected the Company’s focus on developing the Frenkel Topping Investment Management (“FTIM”) business which is geared up to manage increasing assets in the coming years. As such, having received relevant FCA approvals, the Company commenced migrating funds to FTIM and targeting the larger addressable market looking for a capital preserving investment strategy.
Financial Highlights
-- Revenue GBP2.9m (H1 2015: GBP2.9m)
— Recurring revenue of GBP2.2m (H1 2015: GBP2.2m), representing 79% of total revenue
-- Gross profit of GBP1.6m (H1 2015: GBP1.80m) -- Operating profit (before share based payments) of GBP0.3m (H1 2015 GBP0.6m)
— Operating profit before share based payments, expansion costs and launch FTIM GBP0.54m
-- Pre-tax profit of GBP0.3m (H1 2015: GBP0.6m) - reflecting stated investment strategy -- Basic EPS of 0.27p (H1 2015: 0.71p) -- Assets under management GBP687m (as at 30 June 2015: GBP640m) -- Net cash at the period end of GBP4.4m (as at 30 June 2015: GBP1.74m) -- Interim dividend of 0.2375p per share (H1 2015: 0.19p)
Operational Highlights
— Receipt of FCA approvals enabling the Company to act as a discretionary investment manager with full retail permissions
-- Commenced re-papering clients and migrating funds -- Pipeline migration of GBP90m funds to FTIM Discretionary Service
— On track to migrate GBP350m for full year
— Provision of discretionary investment management to enable delivery of higher growth rates with customers benefiting from a widened product offering and improved pricing
— The Company now has a total of 17 authorised consultants targeting a growing number of markets
