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Frenkel Topping predicts bumper 2017 performance

Frenkel Topping predicts bumper 2017 performance

Wealth management company Frenkel Topping has said its trading for the year so far has been "significantly ahead" of the same period in 2016.

The company has not provided any figures on its performance but said it was "broadly in line with expectations" that the results for 2017 would be more than double 2016.

Its results for 2016 showed Frenkel Topping posting revenue of £6.4m and pre-tax profit of £900,000. Its assets under management as of July this year were £765m.

Paul Richardson, the company's executive chairman, said: "The performance of the company in the first 10 months of this year is pleasing given the challenges faced.

"Since joining Frenkel Topping, I have been impressed by the quality of the team in place and the growth achieved in the current year.

"I am also very excited by the opportunity the company has to continue to grow in its current and new market sectors, leveraging off Frenkel Topping's core competency of servicing vulnerable clients."

Frenkel Topping said its recent performance was "particularly pleasing" given the uncertainty surrounding the discount rate used to calculate compensation awards for serious personal injuries.

Frenkel Topping is a specialist provider of independent financial advice and wealth management to those in receipt of personal injury or clinical negligence claims.

In February the Ministry of Justice announced it would cut the discount rate, which is used to establish lump sum compensation to claimants, from 2.5 per cent to minus 0.75 per cent.

The Association of British Insurers has labelled the change “crazy” and “reckless” and predicted that premiums for drivers and businesses across the UK would increase.

But Frenkel Topping said this was a significant market opportunity since court damages would probably increase "substantially".

In response to the opportunity, Frenkel Topping put itself up for sale earlier this year to seek a larger strategic partner, but it ended these attempts to sell itself after a strategic review, saying it was in the firm's best interests to remain independent.

This morning the firm said the decision on the discount rate had delayed decisions on a number of its clients' cases and admitted the aborted sale process had consumed "significant management time" but said the legal market has become used to the change and there has been a "significant increase" in the number of cases which are being settled in recent months.