Frenkel Topping gets helping hand towards target of £1bn assets under management

Salford Quays-based independent financial adviser and asset protection specialist Frenkel Topping Group has received a major boost in its quest to hit an assets under management target of £1bn.

Recent changes in the way compensation for people receiving personal injury or clinical claims are calculated are expected see an uplift in funds of about 80%.

The company has recently been expanding its range of specialisms to include the capability to offer discretionary managed services, as well as financial advice, to those in receipt of a personal injury or clinical negligence claim.

Chairman Jason Granite described 2016 as a “pivotal year” for the group.

AUM for the AIM-listed company grew from £666m to £745m in the year to December 31, 2016 with revenue growing slightly from £6.3m to £6.4m.

Following the purchase of a new office building in Manchester and the launch of Frankel Topping Investment Management, the firm’s profits fell from £1.3m to £0.9m.

Good news for the company arrived on the morning of February 27, 2017 when the Lord Chancellor ruled that the Ogden discount rate, which is currently used to calculate the quantum of damages awards in personal injury and clinical negligence claims, be set at -0.75% rather than the current 2.5%, effective from today (March 20).

“This announcement has dramatically changed how compensation damages are calculated,” said Granite. “We have calculated that the size of court damages is likely to grow significantly to a potential average uplift of about 80%.”

He added: “2017 trading has started in line with expectations and the board reconfirms its revenue target of £8.5m and profit from operations target for 2017 of £3.5m.

“The board is targeting revenue of £10m in 2018 and profit from operations of £5m, which assumes delivery of c. £100m of AUM during 2017 and about £180m for 2018, maintaining current margins and cost control and delivery of a return on the cash balance.

“We are extremely pleased with the group’s prospects and look forward to updating the market as we continue to work towards its target of £1 bn of AUM and £350m on a discretionary mandate.”