Frenkel Topping Group PLC Strategic Update (8589Z)
December 20 2017 - 2:00AM
UK Regulatory
TIDMFEN
RNS Number : 8589Z
Frenkel Topping Group PLC
20 December 2017
Frenkel Topping Group plc
("Frenkel Topping" or "the Company")
Strategic Update
Frenkel Topping (AIM: FEN), a specialist independent financial
advisor and asset manager focused on asset protection for
vulnerable clients, provides a strategic update for the group.
Since the changes to the executive team during the last few
months, the Board has undertaken a detailed review of the Company's
activities and competitive advantages. As a result of this, the
Directors of the Company believe that the potential addressable
market available to the Company is broader than that which the
Company has historically targeted, being a focus on medical
negligence or personal injury cases. As a result of this, the Board
has made investments in the Company's cost base to reflect a
restructuring of the Company along the following core business
lines:
1. Continuing to offer expert witness and Independent Financial
Advice to clients who have suffered personal injury or medical
negligence claims as the established market leader.
2. Frenkel Topping Investment Management Limited ("FTIM")
continues to offer low risk investment products that are designed
to preserve our clients' assets but also offers higher return
products that are more exposed to equities. The Company will
continue to seek to expand FTIM's offering beyond the current three
core portfolios offered and will seek to expand FTIM's services to
a wider audience.
3. A recently launched new business, Obiter Wealth Management
Limited ("Obiter"). This division will offer financial advice to
clients who are in receipt of large lumps sums that they need to
invest. These clients may include the former owners of family
businesses that they have recently sold, divorcees, retirees who
are in receipt of a large lump sum or may need to invest their
pension pot to provide income in retirement and charities who need
to invest in very safe assets.
In order to permit the growth in the Company's existing business
and the new activities referred to above, the Company has increased
its cost base slightly this year and will continue to do so in 2018
and beyond. This will allow investments in information technology,
compliance, marketing and additional hiring, which is described in
more detail below.
Adding to the current infrastructure is expected to deliver
disproportionate growth in operating profit in the medium term, as
the Company is able to significantly increase the amount of assets
under management that it is able to target and potentially with
shorter sales cycles than is currently the case as it moves into
targeting new end clients through Obiter. As part of the changes to
the Company's strategy, the Company will have a lesser focus on
utilising its cash resources to drive investment profits, including
property revaluations, which have assisted the Company to trade
broadly in line with its market expectations, as announced on 14
November 2017.
The Group also announces that it has accepted the first intake
into its Graduate Development Scheme, who over a two year training
programme will gain experience in all aspects of our business and
will obtain the initial qualifications they need to become the
Investment Advisors of the future. Most of those selected for the
programme are existing employees and the expectation that existing
personnel will be considered for new positions helps staff morale.
In addition, the improved work place offered in our new offices,
improved information systems provided by our investment in
technology and attractive employment terms all help staff
retention, which the Board believes is important in driving the
long term success of the Company.
Paul Richardson, Executive Chairman, commented: "Since the new
executive team has been put in place, we have thoroughly reviewed
the Company's strengths and the best way to leverage Frenkel
Topping's competitive advantage in servicing vulnerable clients.
The Company benefits from a high proportion of recurring revenue,
which provides us with the confidence to make additional
investments in Frenkel Topping's infrastructure. Whilst this will
result in some increased costs, we believe that the addressable
market will be greatly increased and we expect that these
investments will drive significant additional revenue growth and
drive a significant increase in shareholder value."
This announcement contains inside information.
For further information:
Frenkel Topping Group plc www.frenkeltopping.co.uk
Paul Richardson, Executive Tel: 0161 886 8000
Chairman
Richard Fraser, Chief Executive
Officer
Stephen Bentley, Finance Director
Mark Holt, Commercial Director
finnCap Ltd Tel: 020 7220 0500
Adrian Hargrave / James Thompson
/ Alex Price
Tony Quirke
Walbrook PR Ltd Tel: 020 7933 8780
or frenkeltopping@walbrookpr.com
Paul McManus Mob: 07980 541
893
Nick Rome Mob: 07748 325
236
About Frenkel Topping: www.frenkeltopping.co.uk
Frenkel Topping provides specialist independent financial advice
focussed on asset protection for clients. The specialist
independent financial adviser has a market leading position
providing advice and fund management services for personal injury
trusts and clinical negligence awards and is well placed to provide
services to a wider customer base.
The Company provides a range of wealth management services
including bespoke investment portfolios, financial and tax
planning. It is focused on increasing its assets under management
by growing the number of fee earners who are qualified to provide
benefits protection for a variety of needs as the Company adds to
its personal injury and clinical negligence specialism.
It has a national presence with offices in Manchester,
Birmingham, Cardiff, London and Leeds and has relationships and
infrastructure in place to further grow its reach and target
markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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