21st Apr 2020 12:25
(Alliance News) - Frenkel Topping Group PLC on Tuesday reported a sharp rise in assets under management over 2019, and has upped its dividend due to its "resilience".
Shares in the financial services firm were 12% higher in London on Tuesday at 33.00 pence each.
At December 31, assets under management stood at GBP898 million, up 15% on the GBP779 million seen at the same point the year before.
In 2019, Frenkel recorded GBP1.2 million in pretax profit, up 9.1% year-on-year from GBP1.1 million.
Revenue was up 12% to GBP8.6 million in 2019 from GBP7.7 million in 2018. Recurring revenue was also up 12%, rising to GBP6.7 million.
Frenkel is proposing a total dividend for 2019 of 1.35 pence, up 4.7% on the 1.29p distributed to shareholders in 2018.
Chief Executive Richard Fraser said: "Our strong performance provides a clear example of the positive outcomes achieved when commercial astuteness is anchored by a strong moral obligation to do the right thing by customers, employees and the wider society. Despite the uncertain geo-political and macroeconomic backdrop, we have achieved an increase of 15% in AuM, 12% in revenue and 9% in pre-tax profit. Our client retention rate remained high at an impressive 99% which reflects our clients' trust and confidence in us to manage their money conservatively and generate returns."
Turning to 2020, the CEO said the year started "robustly".
He continued: "We have won significant AuM mandates together with new business from our expert witness work, the latter a key pipeline for future AuM growth. It is particularly encouraging that the defensive nature of our investment philosophy limited negative market movement to 7.6%, which reduced AuM by 4.1% to GBP849 million as at March 31."
Fraser added that current trading is in line with internal expectations, but it is "difficult to quantify" the ultimate hit from Covid-19.
"Our conservative approach to investments and customer centric ethos has demonstrated, thus far, that we are resilient," he added.
Separately, Frenkel said its independent financial advisor arm has created a 50-50 joint venture with law firm Hudgell Solicitors - which specialises in personal injury, medical negligence, travel litigation, civil libertise and abuse.
The joint venture will be named Hudgells Financial Management Services. Frenkel will become Hudgells preferred partner for clients who require investment advice post settlement.
By Paul McGowan; [email protected]
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