Frenkel Topping revels in surging revenues powered by acquisition spree
Frenkel Topping Group (Frenkel) has rebounded from the pandemic with booming revenues and soaring profits, following a flurry of acquisitions.
The Salford-based advisory group, which specialises in personal injury and clinical negligence, has reported an 80 per cent increase in revenue for the full year ending December 2021 – rising from £10.2m to £18.4m.
Gross profits have spiked 64 per cent from £5.5m to £9m, and that its earnings per share have spiked 72 per cent from 1.3 pence to 2.23 pence.
Frenkel snapped up multiple firms during the 12-month period, including A&M Bacon, Partners in Costs and Bidwell Henderson, with overall assets at the company growing by a third from £28.5m to £37.8m.
Its board has suggested the acquisitions are performing in line with expectations and are now fully integrated.
The financial services firm has also signed working-in-partnership agreements with law firms such as Pattinson & Brewer and Ralli.
Alongside its owned assets, Frenkel’s assets under management have recorded strong levels of growth, shooting up 16 per cent from £1.01bn to £1.17bn.
The board argues that current trading is in line with expectations, despite market volatility from Russia’s invasion of Ukraine and continued Covid-19 uncertainty.
The group acquired Cardinal Management in January – and has revealed performance and integration going to plan
Frenkel’s chief executive Richard Fraser said: “Our 2021 results demonstrate the cumulative impact of clear commercial goals, a targeted acquisition strategy focused on acquiring high quality, complementary businesses with aligned values, and a desire to deliver the best possible outcomes for our underlying clients.”
Total dividends at the FTSE AIM All-Share firm are in line with last year – at 1.36 pence per share.
Commenting on its importance, Karl Morris, financials analyst at finnCap, said: “Frenkel operates in a sector with long term structural tailwinds that will only improve its AuM growth prospects. This positive macro backdrop is complemented by company specific attributes: a niche market and acquisition strategy combined with an ambitious management with a clear roadmap of how investments today can cement the company’s position as a market leader tomorrow.”