Frenkel Topping Regulatory News (FEN)

21 Apr 2005 07:00

Frenkel Topping Group PLC21 April 2005 FRENKEL TOPPING GROUP PLC ("FRENKEL TOPPING" OR "THE GROUP") PRELIMINARY RESULTS FOR THE PERIOD 1 MAY 2004 TO 31 DECEMBER 2004 Frenkel Topping provides specialist independent financial advice on theinvestment of personal injury damages and clinical negligence awards. FrenkelTopping offers a complete service for all personal injury claim handlers,lawyers and individual clients dealing with awards from a few thousand pounds tomulti-million pound cases. Frenkel Topping's expertise includes assetprotection, bespoke investment portfolios, analysis of periodical payments,Court of Protection portfolios and provision of trustee and receivership bankaccounts. Financial Highlights Turnover £1,093,238Profit before interest, taxation and group goodwill amortised £ 44,307Profit before taxation and group goodwill amortised £ 14,297 Adjusted earnings per share 0.02p for the period from 1 May 2004 to 31 December2004 Operational Highlights • Funds under management as at 31 December 2004 £119 million • Business re-organisation now successfully implemented • Frenkel Topping brand name established • Well positioned to benefit from the introduction of the Courts Act • Significant organic growth opportunities • Increasing performance in 2006 and onwards For further information:- Frenkel Topping Group plc - Richard Fraser (Chief Executive) Tel No. 0161 886 8000 FRENKEL TOPPING GROUP PLC PRELIMINARY RESULTS FOR THE PERIOD 1 MAY 2004 TO 31 DECEMBER 2004 CHAIRMAN'S STATEMENT I am pleased to announce our first results as a public company. As covered by a prospectus dated 9 July 2004, Forward Link agreed to acquireFrenkel Topping Limited and Frenkel Topping Structured Settlements Limited andcreate the new Frenkel Topping Group plc. The ordinary shares commenced tradingon 28 July 2004. Forward Link was established in April 2003 as a cash shell toattract companies and businesses which were seeking admission to trade on AIM. For the period from 1 May 2004 to 31 December 2004, the Group recorded turnoverof £1.09 million and a profit on ordinary activities before taxation and groupgoodwill amortisation of £14,297. Adjusted basic earnings per ordinary sharewere 0.02p. Net debt at 31 December 2004 was £(424,092), and the net asset value of theGroup as at 31 December 2004 was £3,661,819. The board of the Company does notpropose a final dividend. Our main achievement to date has been to establish the Frenkel Topping brandname as one of the leaders in the field of independent financial advice forpersonal injury victims. However, a major change to the way personal injuryclaims will be awarded has been implemented from 1 April 2005 when sections 100and 101 of the Courts Act 2003 came into force. From this date, Courts have thepower to impose periodical payment orders as part of a personal injury orclinical negligence settlement. We are certain that periodical payment orders will produce a major change in theway personal injury claims are settled. A claimant's ongoing needs will have tobe fully assessed by a judge and the Courts will need the advice and expertiseof groups such as Frenkel Topping. The strength of the Frenkel Topping brandwill ensure that the company is well placed to take advantage of thesesignificant changes in the years to come. These changes in the market place, along with our own ambitions for the future,have necessitated the implementation of a significant reorganisation of theGroup which has affected our financial results for the period ended 31 December2004 and will affect the outcome for the year ending 31 December 2005. Through the use of focussed marketing campaigns, our new business model willincrease the number of leads generated for prospective business and segment theminto specialist areas of expertise in order to maximise income. Our income is drawn primarily from fees and commissions together with recurringincome from investment funds under management. One of our key areas of focushas been to build our investment funds under management in order to providerecurring fee income. Since the year end our funds under management haveincreased from £119 million to £130 million thus supporting our target toachieve £250 million by the end of 2007. Therefore, our expectations for the future success of the Frenkel Topping Groupare very high. However, the structural changes outlined above have meant thatwe will have a number of one-off exceptional costs including redundancy andrecruitment costs, legal fees, and an increased marketing spend which weestimate will total approximately £150,000. These costs will be included in thefinancial results for 31 December 2005. The above exceptional costs together with the restructuring of the business willhave an impact on the financial results for the year ended 31 December 2005.However we expect the benefits of our recent restructure will be realised insubsequent periods with a consequential increase in our performance expected forthe financial years 2006 and 2007. David R SouthworthNon-Executive Chairman21 April 2005 Frenkel Topping Group Plc Consolidated profit and loss account for the period ended 31 December 2004 31/12/2004 30/04/2004 £ £TURNOVER Continuing operations - Acquisitions 1,093,238 _______Total turnover 1,093,238 -Cost of sales (579,079) - _______ _______GROSS PROFIT 514,159 - Administrative expenses (467,769)Amortisation of goodwill (159,181) _______ (626,950) - _______ _______OPERATING LOSS - Continuing operations (180,116) Acquisitions 67,325 _______ (112,791) -Interest receivable 6,830 -Interest payable (36,840) - _______ _______LOSS ON ORDINARYACTIVITIES BEFORE TAXATION (142,801) - Tax on losses on ordinary activities (5,227) - _______ _______LOSS ON ORDINARYACTIVITIES AFTER TAXATION (148,028) - Non-equity minority interest (4,344) - _______ _______RETAINED LOSS FOR THE FINANCIAL PERIOD (152,372) - _______ _______ Adjusted basic earnings per ordinary share 0.02p - _______ _______ Basic loss per ordinary share (0.46)p - _______ _______ *(the adjusted basic earnings per share is calculated upon the results beforegoodwill on acquisitions) Frenkel Topping Group Plc Consolidated balance sheet as at 31 December 2004 31/12/2004 30/04/2004 £ £ £ £ FIXED ASSETSIntangible assets 3,628,243 -Tangible assets 139,931 - _______ _______ 3,768,174 - CURRENT ASSETSWork in progress 80,893 -Debtors 793,938 700Cash at bank and in hand 15,568 12,500 _______ _______ 890,399 13,200CREDITORS: amounts fallingdue within one year (1,107,980) - _______ _______NET CURRENT (LIABILITIES)/ ASSETS (217,581) 13,200 _______ _______TOTAL ASSETS LESS CURRENTLIABILITIES 3,550,593 13,200CREDITORS: amounts falling dueafter more than one year (67,756) - PROVISIONS FOR LIABILITIESAND CHARGESDeferred Tax (8,219) - MINORITY INTERESTSNon -equity minority interests 187,201 - _______ _______NET ASSETS 3,661,819 13,200 _______ _______CAPITAL AND RESERVESCalled up share capital 227,998 13,200Share premium reserve 3,586,193 -Profit and loss account (152,372) - _______ _______SHAREHOLDERS' FUNDS 3,661,819 13,200 _______ _______ Frenkel Topping Group Plc Consolidated cash flow statement for the period ended 31 December 2004 31/12/2004 30/04/2004 £ £ Reconciliation of operating (loss) to netcash (outflow) from operating activities Operating (loss) (112,791) - Depreciation and amortisation 185,589 - Decrease in stocks 52,940 - Increase in debtors (294,691) (700) (Decrease) in creditors (758,067) _______ _______Net cash (outflow) from operating activities (927,020) (700) Returns on investments and servicing of finance Interest receivable 6,830 Interest payable (36,840) (30,010) - _______ Taxation (23,483) - Capital expenditure Purchase of tangible fixed assets (7,381) - Acquisitions Purchase of additional shareholding in subsidiary (600,000) Net debt acquired with subsidiary (309,010) _______ (909,010) - Financing Issue of ordinary shares(net of costs) 1,565,241 Bank loan repayments (23,956) Other loan repayments (39,299) Capital elements of finance lease payments (6,554) _______ Net cash inflow from financing 1,495,432 13,200 ________ _______ (Decrease)/increase in cash in the period (401,472) 12,500 _______ _______ Frenkel Topping Group Plc Notes forming part of the preliminary results for the period ended 31 December 2004 1. The preliminary announcement was approved by the Board on 20 April 2005. The financial information has been prepared on a going concern basis under the historical cost convention and in accordance with UK accounting standards. 2. The results include the acquisition of Frenkel Topping Limited and Frenkel Topping Structured Settlements Limited with effect from 28 July 2004. 3. Basic earnings/(loss) per ordinary share is based on the *adjusted profit for the period of £6,809 and on 33,009,759 ordinary shares of 0.005p each being the weighted average number of ordinary shares in issue during the period. The basic earnings per share is based upon the net loss for the period of £(152,372). 4. The financial information set out above does not constitute a full financial statement of the company's and group's affairs for the period ended 31 December 2004 but is derived from those accounts. Statutory accounts will be delivered to the Registrar of Companies following the company's annual general meeting. 5. The annual report for the period ended 31 December 2004 will be posted to shareholders by 1 June 2005. *(the adjusted basic earnings per share is calculated upon the results beforegoodwill on acquisitions) This information is provided by RNS The company news service from the London Stock Exchange