Frenkel Topping Regulatory News (FEN)

Frenkel Topping Group plc

("Frenkel Topping" or, together with its subsidiaries "the Group")

Interim Results

Frenkel Topping (AIM:FTG), a leading provider of specialist independent financial advice on the investment of personal injury damages and clinical negligence awards, today announces its interim results for the six months ended 30 June 2013.

Highlights

David Southworth, Chairman of Frenkel Topping, commented: "The Board is pleased with the progress that has been achieved during the period, and was particularly encouraged to have been able to announce that Funds in the Investment Management Service exceeded the £0.5 billion milestone. Our market position remains strong, with client retention maintained at an all time high. The Board continues to have confidence in the future organic growth of the business, particularly given our strong relationships with litigation professionals and our innovative new technology platform."

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Notes to Editors:

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. Frenkel Topping has £521 million of client's funds in its investment management service.

Chairman's Statement

Results

On behalf of the Board, I am pleased to report that Frenkel Topping has again achieved excellent growth across all of our key metrics of revenue, profitability, cash resources and Funds in the Investment Management Service ("FIMS").

For the six months ended 30 June 2013, the Group has grown profit from operations, before share based compensation by 21% to £615,656 (H1 2012: £510,151; FY 2012: £1,108,953) and increased profit before tax by 22% to £578,478 (H1 2012: £474,276; FY 2012: £1,030,528).

Revenue for the period increased by 11% to £2,595,817 (H1 2012: £2,337,342; FY 2012: £4,783,714). The Group generated £683,632 of cash from its operating activities during the period, representing a 407% increase from £167,622 for the six months ended 30 June 2012 (FY 2012: £604,951).

The net asset value of the Group, before non controlling interests at 30 June 2013 was £7,303,530 (H1 2012: £5,885,014; FY 2012: £6,078,197). The Group's gross profit margin for the period increased to 60% (H1 2012: 57%; FY 2012: 60%) and the profit before tax margin was 22%, (H1 2012: 20%; FY 2012: 21%).

Significantly, the Group's FIMS has exceeded the £0.5 billion point, having increased by 17% to £521 million by the period end (H1 2012: £445 million; FY 2012: £483 million). Additionally, the Group is pleased to have recorded its fifth consecutive year of retaining over 99% of its clients for the FIMS service.

As a result of our clients' generally low appetite for risk, our funds are being invested in low volatile assets and consequently the value of the FIMS and clients' assets do not fluctuate in correlation with financial markets. In addition, as the purpose of a clinical negligence or personal injury award is to provide for the expenditure of a dependent client through a drawdown from the investment, we believe the fact that the Group's FIMS continue to grow demonstrates the strong organic growth from new clients that has been achieved.

During the period we were pleased to announce the purchase of the remaining 17% minority interest holding in the Group's trading subsidiaries. The Group now owns 100% of the trading subsidiaries, which the Board believes is a very positive development for shareholders.

Dividend

In June 2013 the Company paid a dividend of £181,695 representing 0.30 pence per share (2011: 0.176 pence) to shareholders. The Company intends to increase future dividends in line with increases in profits in forthcoming financial years.

Outlook

Whilst the Group does operate in a financial services environment, our organic growth is directly linked to changes within the legal services market. During the period, we have continued to build upon the Group's strength in supporting litigation professionals and providing them with premium investment solutions at competitive rates.

The Board believes that the Group's new technology platform and administration software enhances the service we provide to those litigation professionals and to our clients, providing us with clear differentiation from our competitors in the marketplace.

The Board is confident that the Group is well placed to support and adapt to changes that are being driven through the legal service market place. We look forward to embracing any opportunities that develop as a result of these changes.

The Group remains in a strong position and continues to deliver profitable growth. The Board remains confident that our approach to investing clients' assets with caution, providing a high level of service and supporting litigation professionals will continue to create value for our shareholders in future years.

David Southworth

Chairman

15 July 2013

The results for the period are derived from continuing activities.

Consolidated Statement of Changes in Equity

For the period to 30 June 2013

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 1,749,293 shares held by Frenkel Topping Group Employee Benefit Trust. The open market value of the shares held at 30 June 2013 was £459,189 (2012: £97,273).

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 FCA.

Cash and cash equivalents are held at National Westminster Bank Plc.

Notes to the Interim Financial Statements

1. Basis of preparation and accounting policies

Basis of preparation

The Group's interim result consolidates the results of the Frenkel Topping and its subsidiary undertakings made up to 30 June 2013. Frenkel Topping is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The consolidated financial information of Frenkel Topping is presented in Pounds Sterling (£), which is also the functional currency of the parent.

The financial information contained in this interim report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2012 which have been prepared in accordance with IFRS's as adopted by the European Union.

The financial information for the 6 months ended 30 June 2013 is also unaudited.

The Group's statutory accounts for the year ended 31 December 2012 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

The Group has not applied IAS 34, Interim Financial Reporting, which is not mandatory for UK Groups, in the preparation of these interim financial statements.

Significant accounting policies

The accounting policies used in the preparation of the financial information for the six months ended 30 June 2013 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ended 31 December 2012.

2. Revenue Segmental ReportingAll of the Groups 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.

3. Earnings per ordinary share

4. DividendA dividend of £181,695 representing 0.30 pence per share was approved by the Shareholders at the AGM on 29 May 2013 and has not been included as a liability as at 3 December 2012. The dividend was paid on 6 June 2013.

5. The Board of Directors approved the interim report on 15 July 2013.

6. Copies of this report are available from the company website on www.frenkeltopping.co.uk

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