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LONDON (Alliance News) - Frenkel Topping Group PLC, which provides financial advice to people in personal injury and clinical negligence claims, reported a 13% increase in pretax profit in 2014, driven by higher revenue and improved margins.
In a statement, Frenkel Topping said it made a GBP1.6 million pretax profit in 2014, compared with a GBP1.4 million pretax profit in 2013, as the group kept more of the revenue it generated thanks to a fall in direct staff costs. Revenue increased to GBP5.7 million from GBP5.5 million, while direct staff costs fell to GBP1.8 million from GBP2.0 million. The percentage of revenue that is recurring increased to 74% of the total from 70% in the prior year.
Expenses relating to administration and share-based compensation, which are separate to direct staff costs, increased to GBP2.3 million from GBP2.1 million. Finance costs fell to GBP6,972 from GBP10,927.
Chairman David Southworth said he was pleased that growth was "in line with market expectations" but he expects growth to accelerate from 2016, with a view to expanding across England and Wales.
"In 2015 we expect to increase the number of fee earning consultants from 14 to 16, and to develop a stronger network around key regional cities; not only in Manchester, where we already have a very strong base, but also in and around Birmingham, London, Bristol and Cardiff. In these areas we will further extend our support for litigation professionals through the provision of our expert witness services and by offering their clients our premium investment solutions and advice," Southworth said in a statement.
The chairman said the group's cost base will increase in 2015 due to the need to fund its growth, but he is "confident" of a "step change" in performance from 2016 onwards.
"The new financial year has already started well and we are confident that we can deliver this accelerated growth," Southworth said.
Frenkel Topping upped its dividend for the year to 0.71 pence from 0.58p.
Frenkel Topping shares were untraded on Thursday morning. The stock closed at 41.00 pence on Friday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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