Frenkel Topping, the specialist wealth management group that put itself up for sale in the spring, has reported a quadrupling in operating profit for the first half of the year, adding it is still open to bids despite abandoning a formal process last month.
The company is a specialist provider of independent financial advice and wealth management to those in receipt of personal injury or clinical negligence claims.
It is affected by the recent change in the discount rate used to calculate compensation awards for serious personal injuries, which has increased payouts substantially. However, the government is consulting again on the rate, which may mean that they move down again.
The company said it is on target to more than double the operating profit delivered in 2016, as previously reported by year end 2017.
Frenkel announced pre-tax profit of £1m against £300,000 for the same period last year on revenue of £3.9m, compared with £2.9m the previous year. Operating profit rose from £0.3m to £1.3m.
Chairman Jason Granite said that the results of the Ogden Review, which changed the discount rate, were flowing through into higher payouts for clients, and that the firm is working towards £1bn in assets under management.
"The board is pleased with the positive results delivered during the first half of 2017. We will continue to execute the existing business plan for the company,” he said.
“We will seek to expand our geographical footprint, authorised individuals and establish further joint venture relationships to drive asset growth.”
Mr Granite reiterated that the group remains “open to opportunistic investments to maximise its return on its cash position”, after putting itself up for sale in April.
The company, which is listed on the Aim, invited interested bidders to come forward during May 2017.
However, the group said in June that none of the potential acquirers “appropriately reflected the organic growth potential of the group", particularly in light of the proposed amendments to the Ogden Discount Rate.
“The board recommits itself to maintaining a progressive dividend policy and accelerating its year-on-year growth in AUM,” it said in a statement.
