Frenkel Topping saw its pre-tax profits dip during 2016 but the specialist asset manager said changes undertaken last year mean the business now runs at a more profitable level.
The Aim-listed company posted pre-tax profits of £900,000 for 2016, down from the £1.3m in the previous year.
It also saw its revenue for the year remain relatively flat, reaching £6.4m, which is up slightly on the £6.3m posted back in 2015.
But assets under management shot up to £745m, from 2015’s figure of £666m.
The group said it had explored a number of acquisition opportunities but was unable to find high quality business that would not dilute the company’s margins.
Last year, the group launched a discretionary service, Frenkel Topping Investment Management.
According to today’s results, the firm now manages £253m assets on a discretionary mandate, and aims to oversee £350m over the course of this year.
The firm stated: "2016 was a pivotal year of change for the group as it grew 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."
According to the trading update published today (20 March), the firm laid foundations during 2016 which means it now runs at a more profitable level.
It was also helped by lower third party costs across the business and higher assets under management.
The firm stated: “We enter 2017 having achieved our objectives for 2016.”
The group also said 2017 trading started in line with expectations, as it hopes to more than double last year’s operating profit with a target of £3.5m.
Frenkel Topping stated: “The level of profit from operations will be dependent on the amount of AUM added."