Frenkel Topping Regulatory News (FEN)

FRENKEL TOPPING GROUP PLC

(the "Company" or, together with its subsidiaries, the "Group")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

Frenkel Topping Limited (Frenkel Topping) and Frenkel Topping Wealth Solutions (Wealth Solutions) are the trading subsidiaries of Frenkel Topping Group Plc.

Frenkel Topping provides specialist independent financial advice on the investment of personal injury damages and clinical negligence awards. Frenkel Topping offers a complete service for all personal injury claims handlers, lawyers and individual clients, dealing with awards from a few thousand pounds to multi-million pound cases. Frenkel Topping's expertise includes asset protection, bespoke investment portfolios, analysis of periodical payments, Court of Protection portfolios and provision and setting up of trustee and receivership bank accounts.

Wealth Solutions offer financial planning services to the sports and entertainment sectors advising many high profile professionals. The business is expanding into traditional family law areas which sits alongside Frenkel Topping's main market place.

Financial Highlights

For further information:-

CHAIRMAN'S STATEMENT

Results

I am pleased to report record Frenkel Topping Group results for the year ended 31 December 2010, which show a profit from operations before share based compensation of £733,355 (2009: £208,211) and a profit before taxation of £647,213 (2009: £123,437). These results have been achieved following an extensive period of reconstruction and the Board is delighted at the progress that has been made by the Group.

The Group generated £394,861 of cash from its operating activities during the year (2009: £175,389). The Group has also repaid its long-term debt of £200,000 and at the year-end held a minimal net overdraft at the bank of £42,937 (2009: £146,853). The Group is operating well within its current bank facilities and the Board expects this situation to continue into the future.

The net asset value of the Group, before non controlling interests at 31 December 2010 was £5,131,685 (2009: £4,774,008).

The Group's income is derived from fees on our clients' initial investments and the recurring income from servicing the client's portfolios within the Funds in the Investment Management Service (FIMS). The Group revenue of £3.6m (£2009: £3.0m) includes fees from initial investment of £1.2m (2009: £1.4m) and £2.4m (2009: £1.6m) of recurring income from FIMS.

The total FIMS has risen to £356m as at 31 December 2010 from £282m (as redefined), at the commencement of the year. As a result of this growth we expect the recurring income to show further growth in 2011.

The Group's financial strategy has been to become less reliant on fees from initial business, with more emphasis on the growth of FIMS and the resulting increase in the level of recurring fees, which now represents 67% (2009: 53%) of total Group revenue. We expect this trend to continue.

By the start of 2011 the Group had successfully assembled its strongest selection to date of authorised individuals covering various areas of expertise, which will facilitate the planned increases in new FIMS.

We continue to embrace the evolving recommendations from the FSA Retail Distribution Review, as we believe it will form the basis for the future structure of independent professional financial advice. At its core is the principle of Treating Customers Fairly, which the Group has embraced for a number of years. The Board continues to develop the service offering to our clients and to attract new relationships.

The Group has a number of new strategic partnerships within its investment offering, including the New Horizon OEIC, which is managed by Goldman Sachs and Morgan Stanley. Due to the significant balance of FIMS the Group has at its disposal, we are able to attract the services of substantial global investment managers and thus open up their expertise to our clients. To this end the Group has established Frenkel Topping Wealth Solutions Limited during 2010, offering investment services to private clients and intends to establish other new investment vehicles during 2011.

Whilst the financial services market has experienced a period of volatility and uncertainty over recent times the Group has, against this background, established recurring profit streams, cash generation and revenue opportunities which auger well for the future.

Dividends

The Board does not propose to declare a dividend in respect of 2010.

Prospects

The Group's aim is to continue to increase the recurring income from FIMS and to continue to focus on revenue generation and cost control. This strategy has now demonstrated significant success as shown by the strong performance in 2010. The Board has increased confidence in the future profitable growth of the Group, as a result of both increased recurring income and other revenue generating opportunities which will contribute during 2011 and later years.

GROUP INCOME STATEMENT

For the year ended 31 December 2010

The results for the period are derived from continuing activities.

GROUP STATEMENT OF FINANCIAL POSITION

As at 31 December 2010

GROUP STATEMENT OF CHANGE IN EQUITY

For the year ended 31 December 2010

The share capital reserve represents the number of shares issued at nominal price.

The share premium reserve represents the amount received for shares issued over and above the nominal value of the shares issued.

The treasury share reserve represents the cost of 531,235 (2009:708,315) shares held by FTG EBT Trustees Limited, a subsidiary of Frenkel Topping Group Plc. The open market value of the shares held at 31 December 2010 was £34,530 (2009: £24,790).

Retained losses represent the loss generated by the Group since trading commenced.

The other reserve represents the fair value of the embedded option to convert the loan instrument into equity. The loan instrument has now been repaid.

The non controlling interests represent the value of the subsidiary owned outside the Group.

The Group has conformed with all capital requirements as imposed by the FSA.

GROUP CASH FLOW STATEMENT

For the year ended 31 December 2009

1. General information

The preliminary financial information does not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but is derived from accounts for the years ended 31 December 2010 and 31 December 2009. The figures for the year ended 31 December 2010 are audited. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 31 December 2010. Those accounts upon which the auditors issued an unqualified opinion, did not include a reference to any matters to which the auditors drew attention by way of emphasis, without qualifying their report, and made no statement under section 498(2) or (3) of the Companies Act 2006, will be delivered to the Registrar of Companies following the Annual General Meeting.

Statutory accounts for the year ended 31 December 2009 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis, without qualifying their report, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRS's.

Frenkel Topping Group Plc is incorporated and domiciled in the United Kingdom.

Amendments to published standards effective for the year ended 31 December 2010

The following standards have been adopted during the year:

·; IAS 1 (Improvement) "Presentation of Financial Statements"

·; IAS 7 (Improvement) "Statement of Cash Flows"

·; IAS 17 (Improvement) "Leases"

·; IAS 18 (Improvement) "Revenue"

·; IAS 27 (Revised) "Consolidated and Separate Financial Statements"

·; IAS 36 (Improvement) "Impairment of Assets"

·; IAS 38 (Improvement) "Intangible Assets"

·; IAS 39 (Revised) "Financial Instruments: Recognition and Measurement"

·; IFRS 2 (Revised) "Share-based Payments"

·; IFRS 3 (Revised) "Business Combinations"

·; IFRS 8 (Improvement) "Operating Segments"

The adoption of these amendments has had no impact on the financial position and performance of the Group.

Standards adopted early by the Group

The Group has not adopted any standards or interpretations early in either the current or the preceding financial year.

Standards, amendment and interpretations effective in 2010 but not relevant

Other amendments to standards became effective during the period including amendments to:

·; IAS 28 (Revised) "Investments in Associates"

·; IAS 31 (Revised) "Investments in Joint Ventures"

·; IAS 39 (Improvement) "Financial Instruments: Recognition and Measurement"

·; IFRS 1 (Revised) "First-time Adoption of IFRS"

·; IFRS 5 (Improvement) "Non-current Assets Held for Sale and Discontinued Operations"

·; IFRS 6 (Improvement) "Exploration for and Evaluation of Mineral Resources"

·; IFRIC 9 (Improvement) "Reassessment of Embedded Derivatives"

·; IFRIC 16 (Improvement) "Hedges of a Net Investment in a Foreign Operation"

·; IFRIC 17 "Distributions of Non-cash Assets to Owners"

·; IFRIC 18 "Transfers of Assets from Customers"

The directors are of the opinion that the application of these amendments has had no impact on the financial statements of the Group or Company in either the current or preceding financial years.

Interpretations to existing standards and new standards that are not yet effective and have not been early adopted by the Group

·; IAS 1 (Improvements) "Presentation of Financial Statements"

·; IAS 12 (Revised) "Income Taxes"

·; IAS 24 (Revised) "Related Party Disclosures"

·; IAS 27 (Improvements) "Consolidated and Separate Financial Statements"

·; IAS 32 (Revised) "Financial Instruments: Presentation"

·; IAS 34 (Improvements) "Interim Financial Reporting"

·; IFRS 1 (Revised) "First-time Adoption of IFRS"

·; IFRS 3 (Improvements) "Business Combinations"

·; IFRS 7 (Revised) "Financial Instruments: Disclosures"

·; IFRS 9 "Financial Instruments"

·; IFRIC 13 (Improvements) "Customer Loyalty Programmes"

·; IFRIC 14 (Amendment) "IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction"

·; IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments"

2. significant accounting policies

GOING CONCERN

The financial statements are prepared on a going concern basis, which assumes the Group will continue in operational existence for the foreseeable future. The Group's ability to meet its future working capital requirements and therefore continue as a going concern is dependent upon it being able to generate significant revenues and free cash flow and the availability of bank facilities. The current facility has been secured until 31 January 2012 and the Directors do not foresee a problem in securing funding after this date. The Directors have prepared projections which they consider to be prudent and demonstrate that the business can operate within its existing cash resources, and have identified a series of realistically achievable actions that they are committed to taking to mitigate the rate of cash outflow should revenues not be secured as predicted.

3. revenue and SEGMENTAL REPORTING

All of the Group's revenue arises from activities within the UK. Management consider there to be only one operating segment within the business based on the way the business is organised and the way results are reported internally.

4. TAxation

Factors affecting tax charge for year

The tax assessed for the period is higher than the standard rate of corporation tax in the UK 28% (28%). The differences are explained below:

5. EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

6. Basis of the preliminary announcement

The board of directors of Frenkel Topping Group Plc approved the Preliminary Results on

23 March 2011.

The statutory accounts for the year ended 31 December 2010 will be delivered to the Registrar of Companies following the Annual General Meeting. The statutory accounts will be posted to shareholders on 30 March 2011. Further copies will be available to the public, free of charge, at the company's registered office, 4th Floor, Statham House, Talbot Road, Old Trafford, Manchester, M32 0FP and the Company's website at www.frenkeltopping.co.uk

7. ANNUAL GENERAL MEETING

The Annual General Meeting will be held on 10 May 2011 at 10 am at Addleshaw Goddard LLP, 100 Barbirolli Square, Manchester, M2 3AB.