Frenkel Topping shares dip despite ‘significant progress’ in fundamentals

Independent financial advisor and asset manager Frenkel Topping Group plc (LON: FEN) saw progress across its financial fundamentals during the first half of 2019.

The Group’s profit from operations jumped 100% and statutory pre-tax profit bounced 111% on a year-on-year comparison, to £0.8 million and £0.596 million respectively. This was led a 14% growth in revenue between H1 2018 and 2019, from £3.6 million to £4.1 million.

Frenkel Topping shareholders enjoyed similar progress; while the interim dividend paid during the periods was flat at 0.32p a share, basic EPS spiked 88% from 0.32p for H1 2018, to 0.6p a share for H1 2019.

Management said that trading performance was in line with its expectations, with the Company achieving a 98% client retention rate and increasing its AuM by 12% on-year for the first half.

Frenkel Topping comments

Paul Richardson, Chairman, said,

I am pleased to report an excellent set of results and a period of significant progress. Despite challenging financial markets over the period, we have delivered a 14% increase in revenue, a 111% rise in pre-tax profit and made considerable progress against our strategic commitments.  New business income increased by 30% over the comparative period whilst client retention remained high at 98% – reflecting our ability to conservatively manage our clients’ money and generate returns. Our growth has been supported by strategic investments made in developing talent and marketing which has invigorated and strengthened the business for the long term.”

“The Company has built a strong platform to generate further growth and current trading is line with management expectations.”

Investor notes

Despite today’s positive update, the Company’s share price dipped 1.56% or 0.50p to 1.51p a share 03/09/19 09:22 BST. Analysts from finnCap reiterated their ‘Corporate’ stance on Frenkel Topping stock. The Group’s p/e ratio is 28.83 and their dividend yield stands at 4.10%.

Elsewhere in asset and investment management, there have been updates from; Hargreaves Lansdown PLC (LON: HL), River and Mercantile Group PLC (LON: RIV), Brewin Dolphin Holdings plc (LON: BRW), Hansard Global plc (LON: HSD), AJ Bell PLC (LON: AJB) and Intermediate Capital Group plc (LON: ICP).

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.