LONDON (Alliance News) - Frenkel Topping Group PLC on Monday said it has agreed improved terms with existing platform provider and Cannacord Genuity Wealth Management, which should help the financial advisor and asset manager to double operating profitability in 2017 from what is expected to be reported for 2015.
The improved terms were secured thanks to Frenkel Topping's acquisition of FC Fund Management Ltd in September, which gives Frenkel Topping the ability to bring its investment management services in-house.
The acquisition of FC Fund Management enabled the company to launch its own discretionary fund management service, as well as giving it the opportunity to negotiate revised terms with existing platform and discretionary fund management providers.
The company said it has submitted a new regulatory business plan to the UK's Financial Conduct Authority, and expects to be able to offer full scope discretionary fund management, which was previously outsourced, to retail clients subject to approval.
Frenkel Topping said unaudited pretax profit for 2015 was GBP1.3 million, versus GBP1.6 million in 2014, after deducting GBP136,000 of legal fees in connection with the acquisition of FC Fund Management. "After accounting for the legal fees and the additional running cost of the newly acquired business, pretax trading profit from the core business was in line with market expectations," Frenkel Topping said.
The company intends to lift its dividend for 2015 to 0.8875 pence per share from 0.71p paid for 2014.
Unaudited assets under management rose to GBP666.0 million at the end of 2015 from GBP619.0 million at the end of 2014.
Frenkel Topping will release final results for 2015 on Monday March 14.
Shares in the company were untraded at 58.95 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Frenkel Topping (FEN)