Frenkel Topping enjoys strong year with increase in funds under management

Frenkel Topping, the Salford-based specialist financial and professional services firm, increased revenues and profits for the year to December 31, 2024, and achieved record funds under management (FUM) levels. It has also enjoyed record figures for its first quarter trading period, it revealed today.

Revenues for the year were £37.4m, up from £32.8m in 2023, while pre-tax profits of £4.2m were compared with £3.2m the previous year.

Funds under management were £1.560bn, against £1.335bn in 2023, while funds on a discretionary mandate (DFM) were £1.031bn, up from £820m – growth of 26%, a landmark year as the £1bn threshold was crossed.

Cash stood at £3.1m, compared with £2.4m the previous year, and the group finished the fiscal year with net debt of £3.8m against a £2.4m surplus in 2023.

The total dividend remains the same, at 1,375p per share.

The business said its acquisition of cost consultants Northwest Law Services, is already exceeding expectations for revenue and profit contribution.

A revolving credit facility of £7.5m was put in place during the reporting period with Santander.

The Frenkel Topping board said it has assessed the impact of changes in National Insurance and National Minimum Wage set by the Autumn Budget on the future period and is taking steps to minimise the impact as far as is predictable.

CEO, Richard Fraser, said: “Our 2024 results demonstrate the success of our growth strategy over recent years and the resilience of our business against the backdrop of challenges faced within our costs segment which had a modest impact on the year end outturn, as previously announced.

“Pleasingly, we have had a record year of growth in FUM thanks to the skills and expertise of our sales team, aided by the excellent performance of our DFM, Ascencia Investment Management, which crossed the £1bn threshold, a landmark achievement.”

He added: “Our professional services businesses have also continued to grow, with non-recurring revenue up by 15%, with nine per cent of the growth in this area coming from organic growth across our business units.

“This was aided by the acquisition of Northwest Law Services during April 2024, which is already outperforming our original expectations for revenue and profitability.

“This demonstrates the strength of the acquisition strategy with the company demonstrably identifying businesses that the management has been able to grow and capture upside opportunities as well as diversifying revenue streams.”

He said: “We will continue to explore synergies, to invest in our people, data and efficiencies in order to help us to further take advantage of opportunities that the enlarged group presents.

“We have started 2025 strongly, with a record first quarter and we remain confident for the year ahead.”