Business
Business and trading update
Business and trading update.
About this update from Frenkel Topping Group Plc
[{"type":"text","content":"\n \nRNS Number : 2293U Frenkel Topping Group PLC 11 July 2018 \n\nFrenkel Topping Group plc\n(\"Frenkel Topping\" or \"the Company\")\nBusiness and trading update\n \n \nFrenkel Topping, a specialist independent financial advisor and asset manager focussed on asset protection for vulnerable clients, today issues the following business and trading update in respect of the year ending 31 December 2018.\n \nAt the time of announcing the Company's last annual results in April 2018, the Board set out a strategy to drive shareholder value over the next three to five years with 2018 being a year of investment into the Company. This growth strategy is focused on both organic and inorganic opportunities, including an expansion of the Company's business into adjacent target markets through its new business Obiter Wealth.\n \nThe Company has made good progress on its strategic objectives, albeit against a softer trading background than anticipated. Largely due to the changes in the Ogden rate, which has resulted in larger amounts paid out in personal injury and clinical negligence cases, an increasing level of new business opportunities require competitive tender processes rather than direct client onboarding. The average mainstream case size is now more than £600,000. \n \nThis increase in case sizes, has resulted in both the Company's sales cycles taking longer and the fee structures being altered. In many cases, there are smaller upfront payments to Frenkel Topping on appointment. Despite these alterations, the Board believes the Company is outperforming most of its direct peers and continues to win a steady stream of new mandates. However, these have been slightly offset by the loss of certain clients following consultants having left the business. \n \nAs a result the level of AuM at 30 June 2018 is £760m, with assets on a discretionary mandate of £313m. In addition, the Company's expert witness revenue is ahead of the same period for 2017, which is a key barometer to gathering increased AuM in future years and the Company is also ahead of its H1 2018 target for new AuM added. In the first half, overall revenues are expected to be approximately £3.6m, with recurring revenues of £2.9m, both in-line with last year on an ongoing basis. The Board expects the second half to show the usual second half we...