Frenkel Topping up for sale
Salford Quays-based independent financial adviser and asset protection specialist Frenkel Topping has announced it is considering a sale of the group.
It said the move would accelerate the enhancement of its competitive positioning and maximise shareholder value.
Assets under management 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.
The company is targeting revenue of £8.5m and profit from operations of £3.5m in the current financial year and revenue of £10m and profit from operations of £5m in 2018.
Good news for the company arrived on the morning of February 27, 2017 when the Lord Chancellor ruled that the Ogden discount rate, which was used to calculate the quantum of damages awards in personal injury and clinical negligence claims, would be set at -0.75% rather than the current 2.5% from March 20.
The group said that as a result, the size of court damages will grow substantially, with an average potential uplift of around 80%, and there will be an increase in client preferences for lump sum amounts to be managed.
It added that the scale of the opportunity means that for Frenkel Topping to make best use of the potential of this opportunity, it may require the group to combine with a larger, strategic partner.
Jason Granite, executive chairman said: “Since 2015, the management and board have successfully implemented a range of strategic initiatives transforming Frenkel Topping both in terms of enhancing our client service proposition and developing a highly scalable platform to drive growth in AUM and profitability.
“Whilst the competitive positioning and potential of the firm has been further enhanced by the Ogden discount rate review, the board recognises that a strategic partner has the capability to maximise the Group’s potential, to the benefit of our clients, shareholders and employees.”
Roger Hart and Oliver Hincks of Addleshaw Goddard’s Manchester corporate team are advising the board of Frenkel Topping.
