Frenkel Topping Regulatory News (FEN)

Frenkel Topping Group plc

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

Interim Results

Frenkel Topping (AIM:FEN), 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 2014.

Highlights

David Southworth, Chairman of Frenkel Topping, commented: "The Group is delighted to report another excellent set of results in which the Company has significantly increased profit before tax and substantially improved profit from operations by 20%. Assets under Management continue to grow and are currently nearly £600 million. The Group has again maintained its 99% client retention rate.

"Frenkel Topping's strategy is to maintain this organic growth and to build on its strength in supporting litigation professionals. The Group remains in a robust financial position and continues to deliver profitable growth. Consequently, the Company intends to increase future dividends in-line with increases in profits in the coming years, thereby maximising shareholder value."

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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 currently has £584 million of Assets under Management.

Chairman's Statement

Results

On behalf of the Board, I am pleased to report that during this landmark year for the Group, Frenkel Topping has again achieved excellent growth across our key metrics including revenue, profitability and Assets under Management ("AUM").

The legal services and welfare benefit market place has undergone considerable changes, and the Board is satisfied with the continued progress the Company has made during this potentially difficult period. Once again, the Board is pleased to report that the Group has maintained its 99% client retention rate for this period which is testament to the strength of the expert financial advice Frenkel Topping provides for its clients and litigation professionals.

For the six months ended 30 June 2014, the Group has grown profit from operations, before share based compensation by 20% to £740,215 (H1 2013: £615,656; FY 2013: £1,436,703) and increased profit before tax by 13% to £652,745 (H1 2013: £578,478; FY 2013: £1,392,071).

Revenue for the period increased by 4% to £2,705,946 (H1 2013: £2,595,817; FY 2013: £5,507,736).

The Group generated £423,340 of cash from its operating activities during the period (H1 2013: £683,632; FY: 2013 £1,717,362). The closing cash balance is £1,282,506 (H1 2013: £751,816, FY 2013: £1,524,551). The closing cash balance is after paying £354,444 out to shareholders in dividend payment and the purchase of own shares of £148,424.

The net asset value of the Group, before non controlling interests at 30 June 2014 was £7,651,969 (H1 2013: £7,303,530; FY 2013: £7,536,963).

The Group's gross profit margin for the period increased to 68% (H1 2013: 61%; FY 2013: 64%) and the profit before tax margin was 24% (H1 2013: 22%; FY 2013: 25%).

Significantly, the Group's AUM continued to exceed the £0.5 billion point, having increased by 12% to £584 million by the period end (H1 2013: £521 million; FY 2013: £558 million). Additionally, the Group is pleased to have again maintained its 99% client retention rate for the AUM service.

Dividend

In June 2014 the Company paid a dividend of £354,444 (2013: £181,695), representing 0.58 pence per share (2013: 0.30 pence) to shareholders. The Company intends to increase future dividends in line with increases in profits in forthcoming financial years. The Company is pleased to announce that it will be paying a maiden interim dividend of £101,990 representing 0.17 pence per share. The interim dividend will be paid on 15 August 2014 to shareholders on the register at close of business on 1 August 2014 and the shares will trade on an ex-dividend basis from 30 July 2014.

Operations

The Company is proud that this year marks the 25-year anniversary of the landmark case of Kelly vs. Dawes which resulted in Britain's first ever structured settlement, known as a Periodical Payment Order ("PPO") of which Frenkel Topping played an integral part. This was a pivotal development in personal injury law, providing a guaranteed, tax-free income for the lifetime of a claimant and was a precursor to the current periodical payment regime introduced in April 2005 through the Courts Act.

The Board is particularly pleased that the Assets under Management has continued to increase, reaching over £584 million, showing a steady 12% increase during the period. Servicing our clients remains at the forefront of the success of the business and the Board takes pride in our 99% client retention rate for a record five years.

The Group continues to support charitable organisations across the UK, and we look forward to continuing to work alongside our selected charities during the current year. Our network of charities and professional advisers remains of paramount importance to the Group. In addition, Frenkel Topping's series of Deputy Day Conferences, aimed at bringing together a network of professionals working in the area of private client, Court of Protection, personal injury and clinical negligence litigation continues to grow across the UK.

During the period, Dr Robina Shah, Frenkel Topping's National Strategy and Policy Ambassador for Connecting to Carers, was awarded an Honorary Fellowship from the Royal College of General Practitioners. This prestigious award recognises the contribution that Dr Shah has made nationally for her work with patients and carers. This is evidenced by her leading role in creating the Frenkel Topping Well Being Strategy and Social Business Model. It was formed in response to regulatory developments referring to the Well-being Principle Assessment and Provision of Services. This is further testament to the strength of the team which has been built, and to see members being recognised in this manner is a great vindication of their continued hard work.

Outlook

Whilst the Group operates in a financial services environment, our organic growth is directly linked to changes within legal services. During the period, we are pleased to have further built on the Group's strength in supporting litigation professionals and providing them with premium investment solutions via our "best of breed" investment offering and through expert witness reports for clients.

The Board believes that the Group's expert witness services, technology platform and administration software enhances the services we provide to those litigation professionals and to our clients, providing us with clear differentiation from our competitors in the marketplace. We are able to offer expert witness advice in community care and health issues, welfare benefits and personal injury trusts, in addition to pension loss and periodical payment advice. This combined with the ability to provide clients with our "best of breed" investment offering, as we are not tied down to one particular fund manager, continues to strengthen our market position.

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

The Group remains in a strong position and continues to deliver profitable growth. The Board remains confident that our cautious investment approach for clients coupled with a high level of service and support for litigation professionals will continue to create value for our shareholders in future years which is demonstrated by our progressive dividend policy. The Board views the future with considerable optimism.

David Southworth

Chairman

21 July 2014

The results for the period are derived from continuing activities.

Consolidated Statement of Changes in Equity

For the period to 30 June 2014

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

· The merger reserve represents the cost of the shares issued to purchase the non controlling interest at market value at the date of the acquisition.

· The other reserve represents the excess paid for the non controlling interest over the book value at the date of the acquisition.

· The own shares reserve represents the cost of 2,490,541 (2013: 1,749,293) shares held by an employee benefit trust. The open market value of the shares held at 30 June 2014 was £996,216 (2013: £459,189).

· Retained earnings represents the profit generated by the Group since trading commenced, together with dividends paid, share premium cancelled and share based payment and credits.

· The non controlling interests represents the value of the part 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 2014. 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 2013 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 2014 is also unaudited.

The Group's statutory accounts for the year ended 31 December 2013 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 2014 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 2013.

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 £354,444 representing 0.58 pence per share was approved by the Shareholders at the AGM on 14 May 2014 and has not been included as a liability as at 31 December 2013. The dividend was paid on 6 June 2014.

5. The Board of Directors approved the interim report on 18 July 2014.

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

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